DEBTS IN BRITAIN.

Wairarapa Age, 7 July 1936, Page 5

DEBTS IN BRITAIN.

CABLEGRAM FROM HIGH COMMISSIONER. SOME VEERING OF OPINION IN LONDON. WELLINGTON, July 6. Following is an extract from a cablegram, dated July 2, received by the Minister of Finance (the Hon. W. Nash) from the High Commissioner in London:—“The ‘Daily Herald’ says there is only a minor decline following Mr. Savage’s statement and recalls that there is unlikely to be any forcible reduction in interest, as the intention is to approach investors through the British Government. It also recalls that one reason advanced is ‘that the whole economic structure has changed since the loans were made and therefore it is not unreasonable for the Government to meet its creditors with a view to securing equity,’ and says: ‘Buch a reason is unlikely to receive much sympathy in investment quarters, but the fact remains that New Zealand is only raising an, issue which has frequently been advocated by these columns in connection with non-convertible issues of British municipalities. Even City opinions are veering round to the view that there is no necessity for money rates to rise again as in the war and post-war period. If such be the case, every consideration should be given to a legitimate approach for alleviation provided it is not accompanied by foolish threats. If Mr. Savage succeeds in making out a good case for New Zealand, he will have done yeoman work for other debtors, such as the British municipalities. Once that principle is recognised, untold millions going in high interest could be realised for new projects with permanent improvements in business activities and further relief for unemployment.' “The ‘Daily Express’ - editorially says: ‘Empire rates are too high, and if anybody’s business is going to be shaved, bondholders are due for the first operation.’ ”