DOMINION FINANCE.

Taranaki Daily News, 10 July 1923, Page 4

DOMINION FINANCE.

LOANS FALLING DUE. ADVANCES AND PUBLIC WORKS. By Telegrflnh— Pres» Association Wellington, Last NightReplying to a question in the House to-day, Mr. Massey said that during the next six years there would be loans amounting to about £60,000,000 falling due, about half of which was due to public departments. With soltoc departments it was difficult to get renewals, but there was no difficulty with the post office. AU that happened was that the Minister for Finance and Postmas-ter-General met and agreed on what was a fair rate of interest to be paid for the money and the loan was accordingly renewed. It was different in the case of London, and even Australia, where lenders wanted cash, but the post office never wanted, the money back. He was going to ask Parliament to renew authorities on expenditure, particularly in the Advances Department. These were running out, and he did not wish to be caught with the moratorium. He did not know at the moment how he would get on with public works, because public works expenditure would be larger this year than for some time, particularly on account of floods and railways. Mr. W. A. Veitch (Wanganui) urged that the Premier should endeavor to apply all the available post office funds to building houses for the people.

The Postmaster-General defended the rate of interest paid by the post office. The money was on call, and 4 per cent, was not a bad return under the circumstances. It was higher now than some time ago. Mr. Massey, in a further explanation, said there were behind the post office savings bank not only the securities mentioned in the return laid on the table, but there was the security of the whole country, which after ail was the important thing.