CHECK ON OVERSEA LOANS

New Zealand Times, Volume LIII, Issue 12406, 27 March 1926, Page 6

CHECK ON OVERSEA LOANS

COMPETING WITH BRITISH STOCKS MR MACHIN’S PROPOSAL. . . (Sydney “Sun" Cable.) LONDON, March 25. . A drastic restriction of fresh trustee stocks, including overseas: borrowing, was suggested by Mr Stanley Machin when presiding at a meeting of the Association of Chambers of Commerce. He declared that the Government’s first duty was to reduce taxation. He pointed out'that £20.000,000 might he saved by the conversion of £2,000,000000 5 per cent. War Loans into 4 per cent. The Government had the right after 1928 to repay or convert, .but. this was impossible while 3} per cent. War Loan was below 90. The latter was prevented from rising owing to the flood of new issues.

Dealing with overseas loans, he declared that the public were constantly to]d 1 that overseas borrowings would mean the export of British goods*. This was .only partially true. It did not apply to renewals, or loans taised to pay interest on existing debt. Such issues' competed with the British Govermrient stocks and hindered the reduction ‘of income tax.