LOANS AND GUARANTEES

New Zealand Herald, Volume LXXVI, Issue 23381, 24 June 1939, Page 14

LOANS AND GUARANTEES

The question o! a guarantee by the British Government for a New Zealand loan has been considerably discussed in London. When it reached the point of a question in the House of Commons and an official reply from the Chancellor of the Exchequer, it was promoted to something more important than gossip, or speculation by newspapers which seemed more anxious to make political capital on the spot than to commend New Zealand to the City of London or the investor. Sir John Simon says no question of a guaranteed loan arises. What does arise, or should arise, in the minds of all New Zealanders concerned in the fortunes of their country, is the origin or substantial basis of what is being said. Various commentators, ■who seem fully prepared to attack the British Government on the supposition that this Dominion is being shown less consideration than Turkey, or Austria or other European countries, imply strongly that New Zealand has been refused a guarantee. Yet, so far at least as is known at this end of the world, the Government has not been asked to guarantee anything. It is not customary for self-governing Dominions to do what business awaits transaction with the City on that basis. Treasury guarantees for issues by Crown Colonies are quite usual. It has always been different with the Dominions, which have been accustomed to stand on their own feet and handle their own financial business. The fairly widespread assumption that New Zealand is no longer able to do this, based so far as New Zealanders know on very slender evidence, is poor service to the country's credit. This holds, even though most of the comments come from sources professedly solicitous for New Zealand's interests.