BORROWING POLICY.

Otago Daily Times, Issue 20870, 9 November 1929, Page 11

BORROWING POLICY.

WARNING NOTE SOUNDED. Mil' STEWART EXPRESSES CONCERN. (From Our Parliamentary Reporter.) WELLINGTON, November 8. Concern for the reputation of New Zealand in financial circles abroad owing to the borrowing activities of the Government was expressed by Mr W. D. Stewart (Dunedin West), in the House of Representatives to-day, when speaking on the Appropriation Bill, Mr Stewart said he wished to take the opportunity of again raising his voice against the borrowing policy of the Government. The policy was not a wise one at the present time. The high reputation of this country depended upon her keeping a tight rein in regard to borrowing. For all the broken promises of the Government he would readily forgive it if it had broken also the promise of further loans. It was not wise for New Zealand to be earning a reputation for rapidly expanding borrowing. However, the Government, depending on the support of the Labour Party, had decided that the way to public favour was to borrow freely and Undertake works without a pretence of making an investigation of the financial prospects of those undertakings. He did not wish to appear as a prophet of evil or a “croaker,” but all the signs at present pointed to the need for care. We should shorten our sails instead of spreading our canvas. , ‘ <;[t was true/* continued Mr Stewart, Hhat the loan conversion made was extremely satisfactory in view of the subsequent course of events in London,” and he thought the Government was to be congratulated on adjusting the matter in the manner and time it did. The English papers had been pointing out that New Zealand should be particularly careful at the present time, arl should not undertake works or railway schemes without the fullest investigation. Any failure with those undertakings would be bound to react unfavourably to New Zealand. It was particularly unfortunate for every country like New Zealand when adverse times came, as it has a country largely of an agricultural and pastoral nature without any considerable resources in other directions.