THE BORROWING PROBLEM.

Otago Daily Times, Issue 20592, 15 December 1928, Page 14

THE BORROWING PROBLEM.

DIFFICULTIES OF THE POSITION. OPINION IN FINANCIAL CIRCLES. . (Special to Dailt Times.) WELLINGTON, December 14. In reference to Sir Joseph Ward’s cryptic statements about the discovery in the Treasury of something blocking his pathway in -connection, with his borrowing scheme it is suggested in financial circles that what the Prime Minister meant is that owing to big operations on the Lon-, don market early in the new year New Zealand should hold off the market for ordinary borrowing. The British Government has loans of £2,000,000,000 falling due in 1929, and a big conversion operation is probable , in connection with these loans. New Zealand has loans 6! her own to the amount of £24,000,000 failing,due. It is suggested that Sir Joseph Ward should have considered all this before launching his big scheme. It is understood also that the American market is somewhat' disturbed at present.

PRIME MINISTER’S ' DISCOVERY.

NEED FOR CAUTION RECOGNISED

(Special to Daily Times./ WELLINGTON, December 14

In reference to Sir Joseph Ward’s proposals, the Evening Post to-night says in an editorial: .

“The Prime Minister did not’promise last night that money would be available at per cent. He expressed the hope that .ho would.by able to begin gradually to reduce the lending rate. Moreover, h e did not promise unlimited funds for the redemption of existing mortgages. He said quite .definitely that the policy of the department would be that for which it was originated—to' provide money for the people who want a home or a farm. The department was never created for the purpose of providing money for those ,who have homes, and it would be a retrograde step if it were administered in any other wayT In his reply to the debate the Prime Minister modified this by stating that, there would be money' for mortgage' redemption, but lie did not make it clear .when this would bo available or in what amounts, and how the order of priority between new homes and farms and redemption loans would be determined. His statement was that the of applications should be cleared Up. \Ve do not think it will bo denied that this is a modification of the election policy not wholly accountable for by* the fact that it has been submitted within three and is intended to cover only the next six months. We do not quarrel with that modification. During the election campaign we expressed grave doubts of the possibility or wisdom of attemntmg all that the United Party, proposed. Si r Joseph Ward has now had an opportunity of examining the facts quietly for himself, and, as wa believed he would he has recognised the need for caution.”

LONDON PRESS COMMENT.

DOMINION A FAVUcRED

BORROWER,

(United Press Association.}

(By Electric Telegraph—Copyright.} LONDON December 14. ,J ■-onunentuig on a, cable message from Wellington wit], respect to Sir Joseph Waal s references to difficulties on the Lwtton market respecting loans, the Morning Posts pity editor says: . V, Ma 7 k® & ' s “s ' v ell to make it perfectly clear that while London is certainly not open at present to all and sundry,' JNew Zealand is a borrower which would always be placed on the most favourable terms. Her credit : here is excellent. the , l,e V ol,ld . not he borrowing men the market is more desirous of beinc helpful to meet than loans .maturing, of • , e ;' V Zealapd has nearly £30,000 000 ri , 1 | 92 .\~‘- UStralian Press Associationunited Service.