"PERFECTLY SOUND”

New Zealand Times, Volume XLVII, Issue 10850, 16 March 1921, Page 5

"PERFECTLY SOUND”

Ei,MiNIU.I FINANCE

STATEMENT IN PARLIAMENT BY PREMIER. ‘ FLOATING DEBT IS NIL.” Had the Finance Minister been able to renew the £10,000,000 loan falling due this year:' asked Mr G. Witty (Rjecarcon), in the House of Representatives yesterday afternoon ; and did lie anticipate being able to renew tlio forty millions falling due within the next two years? Mr Massey replied that the renewal of the ten million loan had been arranged; and tile Government had, at the same time, managed to convert quite a large pared of the -4.} per cen.t. free from income tax debentures, their place being taken at .5) per cent, income tax-paying debentures. He did not think there- would be much difficulty in regai d to the large amount falling due belore long. The Hon J. A. Hunan (Invercargill) asked whether, 111 view of the straitened financial position in the country, private and public, the Prime Minister would make a statement as to tho amount of the floating public debt. It was essential to know that, ill order 1 to discuss the Financial Statement fully and intelligentlyMr Massey: So far as f can recollect at the moment the floating debt is nil. I think the Treasury bills are all paid up, and that is the form which the floating debt usually takes. If they are not already met, they will be met within the next few days. (Hear, hear.y Jlr Hanan : There are other items to make up the floating debt. Mr Massey ; We owe some money to the Imperial Government, and that, as a matter of fact, bus not been funded. But we don’t consider that floating debt, as the Imperial Government is perfectly willing to arrange matters whenever wo line; that would mean paying bigger interest than we are now paying. He was willing, he added, to give every item of information, and nothing would lie left untold when the Financial Statement came along. He wanted to satisfy hon. members that the financial position of tho country was perfectly sound, and prepared to meet any difficulty that might come along for some considerable time. He might give some information in the course of the present debate. Mr A. S. Malcolm (Clutha) : Does the Finance Minister intend on the Imprest Supply Bill to make ae detailed a statement as possible as to the finances of the Dominion for the year ending March 31st? Mr Massey: Yes; I am prepared to give the House full details of the financial position of the country; and, while 1 know that care and economy are absolutely necessary if we are to get through the present stringency without further diffic lty, I see no reason to be anxious as to the present position,