FINANCIAL POSITION

New Zealand Times, Volume XLVI, Issue 10716, 9 October 1920, Page 7

FINANCIAL POSITION

A HUGE PUBLIC DEBT BUT COUNTRY SOLVENT. PRIME MINISTER MAKES STATEMENT TO PARLIAMENT. The Prime Minister stated in tho House of Representatives yesterday that Now Zealand’s gross public debt on March 31st last was £201,170,755. At the end of tho financial year 191415, tho debt 1 was £99,822,510. Tho increase was £101,343,245. He quoted the following assets to show what the relative position is of our assets to our liabilities: — Sinking funds accrued, £7,257,564. Invested cash balances in public account, £20,206,723. Bank of Now Zealand shares, £875,000. Reserve funds securities, £BOO,OOO. Now Zealand Consols investments, £475,985. State advances, £14,479,000. Cash in public account. £6,210,727. Cash in hands of officers, £1,050,949. These sums, with one or two minor items, made up a grand total of £51,709,791. SPENT ON PUBLIC WORKS. Tho amounts ’ expended on public works, lands settlement, railways, electric power, etc., totalled £72,317,643. The items were nearly oil interest paying and were worth much more than they cost. There was a surplus of liabilities over assets of £53,143,000. This did not include £18,125.000 spent on in directly productive works. The position was that there was a gross public debt of £201,170,755, which exceeded the assets in sight by £52,143,000. Tho point ho was making was that though apparently we had an enormous debt we were quite solvent. Mr Massey said that although wo had to pay tho enormous debt of £200,000,000, the private wealth of the country was £500,000,000. He had not given up hope of getting part of our expenditure from tho Germans, but he was not sanguine enough to think we would gob much. Wo would got it in 30 years’ debentures, or something of the kind.

A member: To pay the pensions. Mr Massey: I don’t think wo will get enough to pay the pensions- That would taka a capital value of £25,000,000. I don’t expect we will get more than a quarter of that. THE OUTLOOK GOOD.

The outlook was good and the fulure depended on ourselves. There wa* an impression abroad that we were going t° have a general depression before long. He was bound to say that ho -saw indications in other parts of the world.

A member: It is only propaganda! Air Massey: I would like to believe ib. I say that this country is so productive that I am certain that by our pulling together—— Air Howard interjected something about harnessing the water-power. Air Alassey: I don’t think'the depression will last long, but we see that some of our stable products have seriously fallen in price. I am thinking particularly of wool. A member: It won’t he for long. Air Alassey: We will not get back to war prices. . The Hon. J. A.- Hanau: " Labour won’t go down! Air Alassey said he was glad bo see that the British people were increasing their exports. If they could only do that the depression would not last long. Even in America to-day our products had fallen. He did not want to magnify these things, but he had reliable information that there had been a fall. We must encourage production and make laud produce more. Air Sullivan: Encourage the secondary industries I

Air Alassey: Eencouage that as much as possible 1 Air Parry: You are not doing much iu that direction I