PRESS OPINION

Wanganui Chronicle, Volume 74, Issue 138, 13 June 1931, Page 13 (Supplement)

PRESS OPINION

A NEW ZEALAND LOAN It has become the practice of th. Government of the Dominion to up proaeh the London money market n tho earlier months of the year will an application lor a loan, it wouit nave enhanced the credit of the xtouu try which, an important Lomioi paper says, is ‘‘always deserved!' high” if it had I )cen possible for tin Government this year to abstain fron an overseas loan proposal. Unfortun ately, it would seem, the Al mister o Finance, has been forced to the conclu sion that it ig necessary that fund: shall be borrowed abroad for the pro sccution of the public works that an in course of construction and I‘oj other purposes. The loan is, as ; matter of fact, being issued at r somewhat later date than usual, am it may be surmised that this ha: been due to the existence of uniav ourable conditions. Tho recent re duction of the bank rate at. Home furnishes an indication, however that there is no present luck oi funds for investment in capita issues. A loau at 5 JJer cent, at 99 however, which is being umter written, docs not represent chcaj money. Probably it is this considera tion which has projnptcd the Govern ment to give the loan a short cur rency. As short-dated loans are no: generally to be recommended, it mav be presumed that the Government has been advised that the price ot money is likely to fall and that, a re ncwal of the issue may be effected in a few years ou terms that will be ad vantageous to the country. The pur poses to which the proceeds ot tin loan will be applied have not been definitely stated. It is to be hoped that they do not include any railway undertaking that will certainly prove not merely to be unreproductivc. but an actual drain on the resources of the country.—Otago Daily Times. SYDNEY’S GROWTH. Dr. Bradfield, designer of the harbour bridge and the city railway, is amoim

the <1 reamers. He has always tried to visualise a much greater city and he has planned accordingly. He says that Sydney is lop-sided, because there me fom times as many people living on 'he southern side of the harbour as theie are on the northern. That is clea:lv due to the lack of facilities for transporting the people across the harbour, which dominates the lay-out of die city. Within a four-milcs radius of the Central Railway Station about 600,b00 people have their homes on an area of 26,300 acres—about 23 persons to ihe acre while the rofhaining 700,000 re side on an area of 400,000 acres—about one and three quarter persons to each acre. That, says Dr Bradfield, clearly indicates where the population will go. The bridge will make it possible for 1,000,000 to live on the North Shore. The city proper would become a New York in miniature, and the North Shore a second Brooklyn. The steel work of the bridge has been completed ami the flooring, or decking, is being put down. It is expected that’ the bridge will be ready for opening at the end of the year. The approaches, which are being constructed by *,hc Government, are being pushed ahead as rapidly as the limited funds available will allow. They have altered beyond recognition vast areas on either side of the harbour.—Alanav atu Daily Times. german reparations. The statement made that Germany is likely to seek some relief from reparation payments either bv postponement or reduction will m,t surprise those who have made any study of economic conditions in that country. Despite tong hours of labotii

and harder work on the part of the nation generally Germany is suffering almost as harshly as any country in Europe from the evils of unempiovmont. What is still graver is that there is growing amongst her people a feeling of despair, which is being exploited by the worst typo of politi cal leader. Of what use is all the sacrifice the nation is called upon to make, they ask. when all the fruits thereof go to the payment of repnra tions to foreigners. The result was seen in the success of the, “Hitler ites” in the, last elections. Their programme may bo summarised as being ‘Germany for the Germans, and repudiation of war debts.” The more stable (dements know what the cost of repudiation would bo to German}. and so far have kept control of tin

national policy If they seek relief i: will be by constitutional method-, and the proposed appeal to Greai Britain may be the first step m a re opening ot the whole question of war debts. 'I hat men ns that the financial relations between the United States and Great Britain must conn* up for review. There is a growing b-'dy of opinion in both countries that the sooner this happens the better. Pa\ meats to Anier’.ea have been made in gold because the United States’ tari ” has prevented payment in kiml. and the result has been an over supply of gold in America and a lack of it else where. In both eases diminution of trade has followed, and the whole is faced with the problem of uncin ploynient. If concessions on the part of Great Britain and the United States will stimulate a greater flow of trade and lessen unemployment they will be thoroughly just i tied, even though they may entail a redm- , tion or postponement of German pay meats. Any rearrangement suggested by Great Britain must have the ap proval of the Dominions, but. as t,heir well being greatly depends upon that of tho Homeland they are nut likclx to demur at any steps taken t’-erc for such a purpose. It is, of course, for Germany Io prove, first of all. that tho burden she is carrviug is I<m grievous for the nation to carrj Otago Daily Times.

THE INDIAN POSITION. Although Mr Gandhi has consented to take part in the Round Table Conference, he has lately expressed views on the. future status of India which ate not without an ominous significance* He stated that although at one time Lo had thought the dominion status such as is enjoyed by Australia and New Zealand would be suitable to India, ho had since changed his mind. The reaso.. he gives for hi 8 altered views is that Australia is an essentially British community, India is not. But there cun be. he thinks, a partnership between England amt India, containing provisions for mutual assistance and reciproad obligations. “1 cannot agree,” he said tu one interviewer, to Dominion status when 1 go to the Round Table Conference. But I should welcome a closer association in equal fellow shiji that can make an outstanding contribution to spiritual greatness in international and inter racial affairs.” Ye confess that this has a rather unpleasant, sound; it does not seem to indicate a conciliatory attitude. But we may be wrong. Air Gandhi says they are, not going to quarrel about words, am' although he thinks that the British rule has been disastrous to India, he is prepared to agree that the man in the street is honest in his belief that, he has a trust to fulfill in India. We hope that he will lind a common basis for agreement with the other delegations.Hawke’s Bay Herald. AIR LANG’S ‘BLUFF.’ Mr Lang has evidently realised that his game of bluff is over. He has thrown in his hand and sided with others who have earlier admitted that no Labour Government, nor any form of Government can make Australia into a trade unionists’ paradise. But now that ho is converted to recognition of the need for economies, the New South Wales Premier is being shown up in his true colours. He never was a constructionist and to-day, when Australia u in need of statesmanlike ability on ’ e part of her politicians, the man who has done more, perhaps, than any other individual to discredit hie vountry in the eyes of tho financial world, is revealed as being totally bereft of ideas. His contribution to the twenty per cent, reduction plait is the £5OO per annum maximum. Mr Lang knows full well the absurdity of regarding that as a practical contribution to the solution of the problem. If ho were a labouring Labour man in his private life there might be some excuse for him: but Air Lang is in the land agency business in private life am] knows full well tho exact value of his plan. However, ho apparently has not given up his faith that he still knows best what will go down with the public; it would scent 1 at even in this time of crisis foB his country he is auite content if ho can continue to shine as tho champion of the ‘‘have-nots” and enemy of tho “haves.”—Hawera Star.

THE NEW LOAN. It may be premature to assume that the loan which is to be floated on the London Money Market next week will be a complete success, but at present its prospects are quite satisfactory. The Government is borrowing £5,000.000 at 5 per cent, for three years, and so far the proposals have been well received. Tho Morning J'ost speaks appreciatively of “New Zealand’s sound conduct of her financial affairs,” and expects the issue to prove “a popular security. ’ The Daily Telegraph regards tho terms as “attractive,” especially in view of the fact that “the credit and reputation of New Zealand are always deservedly high.” With such influential commendations to ■■icii it. the fl'italion should go off easily and rapidly, leaving tho underwriters very little responsibility in the matter. It may be objected that we will have to pay a high price for this

money. ihe loan is issued at 99, and '•n this basis interest will amount to £5 7s 5d per cent., a decidedly substantial rate. But it must bo remembered that even a few weeks ago such a loan could not have been covored at less than 5J per cent with all contingent additions, and very probably could nut have been floated ab all. Mr Forbes has done well to holtr his hand till market conditions were favourable, and the recent, reduction hi bank rate indicated a large available supply of luan capital. No doubt the tendency itF the Britisa miml to associate New Zealand witTi | Australia has prejmligeil our financial standing at Homo in revent months, and after the shocks administered to the money market by Air Lang ana Mr Theodore it was well to wait a \\ li Io till the atmosphere cleared a So far as the Dominion is con'Crne'l, the successful flotation of tho loan should have a distinctly encouraging effect, and should help to dissipate the gloom and pessimism still prevalent in certain quarters. At four-fifths of the money is to he spent on “productive works,” tho whole country will speedily feel the benefit of his financial operation. In < tk* re-tricted conditions prevailing here, it is well that ‘ho money is being raised at Home, without throwing any additional strain on our local resources. I, is true that a portion of the loan will reach us In the form of imports, ami will thus to some eg,ent militate against a favourable balan\o of trade. But this is an inevitable consequence of borrowing money abroad, and under existing circumstances the successful flotation of this loan can hardly fail to produce a beneficial reaction upon the whole country and the financial situation.— Auckland star.