RISE IN PRODUCE PRICES.

Pahiatua Herald, Volume XLI, Issue 12453, 20 September 1933, Page 3

RISE IN PRODUCE PRICES.

MR. FORBES’ PREDICTION. Electric Telegraph—Press Ass<»ct > r io» WELLINGTON, September 18. Interviewed, Mr Forbes said liis experience at Home led him to believe New Zealand produce prices had fallen lower than was really justified, but he was glad to say that, with, returning confidence and the improvement of the general trade position in the "United Kingdom, the demand for our produce was improving, with a consequent rise in prices. . Questioned regarding New Zealand loan conversions, Mr Forbes said a short-dated five million loan was falling due next year and the conversion of that issue would be taken up by the Finance Minister. Loan conversion was still under official control and unless the time was favourable there was little use going on the market. He had no doubt that New Zealand would be able to secure as favourable terms as were secured by Australia. On the question of the general conversion of New Zealand’s indebtedness, Mr Forbes said this was wrapped up with the question of increasing commodity prices. The matter had been discussed with British Ministers and it was agreed that they should endeavour to raise price levels in order that they might carry their indebtedness. If commodity prices improved! we would be able to pay our way and the same necessity for conversion would not exist.

The general view at Home was that, considering the seriousness of the Dominion’s internal position, the action taken was very moderate.