OVERSEAS DEBT

Otago Daily Times, Issue 21829, 16 December 1932, Page 10

OVERSEAS DEBT

DOMINION’S HEAVY BURDEN CABINET’S REAL PROBLEM (Special to Dailx Times.) WELLINGTON, December 15. The opinion that the real problem with which Cabinet had to deal at the present time was the burden of the Dominion’s overseas debt commitments was expressed by Mr A. D. M’Leod, M.F. for Wairarupa, in the course of an interview. Mr M’Leod said that he hud read the statement issued by the Business Men’s Committee, but be felt that no good result could accrue by the questions referred to being carried further by discussion among the parliamentary group with which be was associated. His opinion was the opinion of the farmers generally. By their almost daily contact with country traders and business men they were more conversant with the townspeople’s difficulties than were the ci,ty business men with the farmers’ problems. The city business men continued to centre their criticisms around farm mortgages and values. Deeper thought and inquiry would show that these were not at the root of the farmers’ present troubles. The basis of the trouble was that New Zealand’s overseas public and local body debts now amounted almost to £200,000,000. If New Zealand were not to default exported farm produce had to pay practically the whole interest on that huge amount. Unless further borrowing were resorted to the question arose whether the exports could continue to carry the burden. Farmers generally were not wilful defaulters and they did not desire to. be. However, they could not continue to pay the amount of overseas interest needed with their farm produce and at the same time provide their full share for the Dominion’s internal obligations without material assistance from all. sections of the community. Farmers could not continue in the present circumstances much longer, and an all-round default collapse was more than a possibility. It was with no sense of satisfaction tlfat he and those in the group associated with him had last session supported legislation which amounted to a direct repudiation of written contracts. They had no desire to be called on again to do the same thing. It was for this reason that they had raised the exchange issue. Business interests now had a change of rallying behind Cabinet and Parliament and assisting in every effort to help the Dominion.