The Southland Times. PUBLISHED EVERY MORNING. Luceo Non Uro. SATURDAY DECEMBER 22, 1928. FINANCIAL MATTERS

Southland Times, Issue 20675, 22 December 1928, Page 6

The Southland Times. PUBLISHED EVERY MORNING. Luceo Non Uro. SATURDAY DECEMBER 22, 1928. FINANCIAL MATTERS

When Sir Joseph Ward told the House of Representatives of a difficulty he had discovered on taking over the Treasury, he first called it a legacy left by the Reform Government, but his Jater statements cleared his predecessors of any suggestion of bungling or impropriety, though he said nothing to disclose the nature of the discovery. The situation, of course, was known to Mr Downie Stewart, but he could do nothing because the matter was confidential. Sir Joseph Ward is bound in the same way, but he has made a further observation on this subject which removes some misapprehension : The transactions were under confidential seal, and I was not myself aware of the nature of these matters until December 13, when I took over office. It is obvious that the proposals in no way affected the country’s credit. They were made before it was known what Government would be in power. It has been hinted that the conversion of the 1929 maturities was the difficulty, but, while arising out of this, the proposals before me go much further, and involve a marked departure from what has been the usual (Course in London finance, and they did have an important bearing, in my own opinion, on the policy which the country endorsed at the election. As soon as I had realized this I had to give very serious consideration to a review of the whole position so as to decide upon the best course to pursue in the interests of the country. This I have now been able to clear up, and have cabled London my decision, the result of which will become public when the whole transaction is completed. At present details obviously cannot be discussed. When Sir Joseph Ward first mentioned this matter we suggested that probably the question most intimately involved was the raising of money for the big loan scheme to provide advances to settlers and workers. Nothing has been said so far to confirm this view, but the Prime Minister’s statement is extremely interesting in view of his reference to the proposals having a “bearing on the policy endorsed at the election.” Sir Joseph Ward, in the course of a statement from which we have quoted, repeated the declaration that his borrowing proposals involve no larger sums than the Reform Government borrowed, but on that point it will be necessary to wait until the Government’s loan arrangements appear before the House, because the United Party’s programme, coupled with the commitments already in existence will require more money than the £70,090,000 mentioned as the amount required for railways and the Advances Department in the next eight or fen years. The London financiers are in fairly close touch with the position of New Zealand, and they are aware of the excellent trade prospects so that their observations are of great importance to the Dominion. The proposals received from the Treasury do not involve the credit of the Dominion, which stands high, but the serious aspect of it seems to be that an important section of the United Party’s policy is in jeopardy as a result of this intervention. The Prime Minister is confident that he will overcome the difficulties and so there is no reason for any disquietude. It will not be long before the details are made public.