BORROWING POLICY

Stratford Evening Post, Issue 62, 25 May 1928, Page 5

BORROWING POLICY

ATTACKED BY MR POLSON.

INCREASE IN DEBT.

Press Association —Copyright HAMILTON, May 2-1

Mr W. J. Poison, Dominion president of thei Farmers’ Union, vigorously attacked the Government’s borrowing policy when addressing the Provincial. Farmers’- Conference, Ho said 1 ; “During the period since tiro war wc have been increasing the national debt, that is tli© public debt, at a rate of nearly £1,000,000 in month. The interest rate is also increasing. The. gross, national debt on March 31, 1921, was £206,324,000. The amount borrowed since was £4.4,680,000, bringing the debt to £245,850,000 in ]j927.” ,j Mr Poison also detailed the local body debt which, less the amount borrowed by the. local bodies from the Government iff 1927, had reached the extraordinary total of £64,000,000. “It is quite obvious,” bo said, “that renewals of ..those* Mans must mean an increased rate, of thei interest, in. spite of the recently made boast about the success of the last New Zealrind loan.” j A FUSS ABOUT FOURPEXCE. This loan' Mr Poison described as “a fuss about 4d,” because the net yield to the investor was £4 19,s Bd, whereas in the case of the Commonwealth’s last loan more recently floated than New Zealand’s, the net yield to invertors was £5, a. difference of 4d. Hanking authorities showed that in the last few years all issues participated in the general improvement, New Zealand among them. “In tho next four years the Government has £87.475,000 worth of loans maturing, which have been renewed by means of increased interest charges. Renewals Alone in the next four years will mean an addition of £-100,000 in interest, and the new loans during the next fire years will mean another £4,000,000 in interest. EXTRAORDINARY BOOKKEEPING. “In, a speech in reply to me!,” Mir Poison continued, “Mr Downie Stewart admitted that exports must pay for imports, and should show a sufficient surplus to pay also for overseas loans. This is just niv point. Now he claims credit for the import of capital without a debit for borrowing. This is most extraordinary book-keep-ing or a Minister of Finance. He forgets that he borrowed 12a 6d worth ’and must pay back £l, and suggests that lie borrowed £1 and need only pay brick 12s 6d. Taking these figures, into account w© find the borrowing for a Minister of 1' inauce. He ly increaiycd since the war. “In the reply of Mr James, on behalf of the Government, to my Masvterto.ni speech, it is stated that I ig" nored the fact that import values are 1 loaded with 10 per cent. The loaning j s intended to coyer in the cost of transport, freight, insurance, etc. Mr James is apparently under tho impression that we gen our transport done for nothing. To eliminate it would falsify the figures, .nd as a fact 10 per cent. is. not nearly enough to cover the charges. “In the 1924-25 Year Book the Government Statistician gives tho tstinxitcd balance-sheet of the taints and credits of New Zealand He estimates freight, insurance and exchange at 20 per cent, of The aggregate of imports from iJli t 0 1927 was £317,000,000. This gives £28,817,000 as the added amount for over the period- If <k> adopted by the Government is collectthou a sum of £29,000,000 muse be ,i.deled to imports to get tho Mvhmcc of froigh charges for the period. 1 • would make my figures all the mo, formidable. It would be mteroffiri to know why these statements 1 tho Year Book were dropped alter Farmers’ Union. Provincial Conference this afternoon cmphH c ally rejected a remit opposing • entry of the union into public-