WAR DEBT TO BRITAIN

New Zealand Times, Volume XLIX, Issue 11305, 2 September 1922, Page 5

WAR DEBT TO BRITAIN

FUNOINC ARRANGEMENTS 27 MILLION'S TO BE FUNDED FOR 37 YEARS. EXPLANATION BY PREMIER. The Prime Minister, as Minister for Finance, explained to the House of Representatives last night the arrangements for the funding of our war debt to the Mother Country. Our debt to the Imperial Government, ho stated, was twenty-nine millions, but two million® of this had been taken over by the Advances Department, so that the amount of the debt to he funded was £27,000,000. That amount was borrowed in various sums at dilferent rates of interest and might all he called far at any time; but the Government had arranged with the Imperial Government to fund the twenty-seven millions for a term of 37 years, and at a rate of interest, including sinking fund, of 6 per cent. And, if money became cheaper, as he thought it would (said the Prime Minister), we would get the advantage of it. If it should be necessary to go to the London market for money shortly, r he thought we could get it at 4-i per cent. It was, he thought, a satisfactory arrangement; and the most satisfactory part of it was that our annual payment under the new arrangement would be £53,000 lees than under the old one; while, if money dropped to 3 per cent, we should he able to take advantage of it later on. (Hear', hear.) Mr MoCaflum: Did you increase the capital when you funded the debt? Mr MAssey: No; the Imperial Government was very reasonable with us. (Hear, hear.)