CONVERSION LOAN.

Wairarapa Age, 4 July 1932, Page 6

CONVERSION LOAN.

MR. BALDWIN ANTICIPATES SUCCESS. SAVINGS THAT WILL HELP. THE NATION. PROSPECT OF TRADE REVIVAL. RUGBY, July 1. The Government’s appreciation of the reception of the loan conversion scheme was expressed by the ActingPremier, Mr. Stanley Baldwin, in a broadcast speech, in which he said that if he might judge by what he saw in the House of Commons last night, in the papers to-day, and what he heard being said everywhere, there was not a shadow of doubt that the public would see this thing through. “We have gone a long way since the dark days of last autumn, but much remains to be done. One of the obstacles is the burden of taxation. It is the duty of the Government to seize every chance of reducing expenditure, thus reducing the amount to be taken from the people in taxation. It is providential that, just when our burden most needs reducing, there is this chance of making a very large saving in debt interest, while scrupulously observing every obligation to which the faith of the country has been pledged. “The greatest pre-war scheme for the conversion of debts in this country was that effected by Lord Gjoschen in 1888. The immediate saving then effected was £1,400,000 yearly. The immediate saving aimed at in the present 'scheme is about sixteen times as great. Lord Goschen was dealing with practically the whole of the national debt of that time; our scheme relates only to war loan, which is less than a third of the present national debt. “The scheme is of equal importance for industry. This great mass of £2,000,000,000 of stock bearing 5 per cent, interest has been a deadweight on the capital market for many years. Neither the State nor local authorities nor British industries could obtain capital on such cheap terms as our restored national credit really justified. This scheme, when it is through, will enable industry to get the money it needs more cheaply, and it will do more than any other new thing the Government or the country can do at the present moment to set the wheels of industry going again.” PRIME MINISTER’S APPEAL. Mr. Baldwin read a letter from the Prime Minister to the Chancellor, in which the former said:—The holders of loan, large and small, will, I am confident, respond to the Government’s appeal with the same goodwill and patriotism which the British people have always shown when a great national effort is required. If every holder of War Loan will play his part by responding quickly, - another great step forward will have been taken towards the restoration of national prosperity. Prince George, at the conclusion of a speech last night, said that if the response to the conversion plan was successful, it might prove the beginning of better times. / LORD SNOWDEN’S VIEW. This view was echoed to-day by a former Chancellor of the Exchequer, Lord Snowden, who described the offer as a bold venture, but one fully justified by the greatly improved national financial position and the strength of British credit. He added:— It may well be the beginning of a great trade revival. It will renew the confidence which is an essential condition of prosperity. The success of the operation will have a profound influence throughout the world. The author of fhe scheme, Mr. Neville Chamberlain, declared that he had no doubts as to the patriotic response that would be forthcoming, and was completely confident of the success of the great operation. Its reception would give a good send-off, not only to the Lausanne Conference, but to Ottawa as well.—(British Official Wireless).