A GUARANTEED LOAN

Wanganui Chronicle, Volume 83, Issue 143, 20 June 1939, Page 7

A GUARANTEED LOAN

LABOUR NEWSPAPER'S SUGGESTION I . LONDON, June 18. ; Suggesting that Mr. Nash and Sir ’ John Simon, Chancellor of the Exi chequer, should come to terms con- ; cerning a guaranteed loan to New i Zealand on the lines of those to i Rumania and Turkey, the City Editor lof the Daily Herald says that Mr. Montagu Norman and other bankers I told Mr. Nash that they cannot, at the ' moment raise £16,000,000 for defence. . "Certainly,” the writer remarks, "the I conditions do not favour this type of loan, and therefore only part, of Mr. I Nash’s difficulties can be attributed to political prejudice. Some of the New Zealand banks arc known to be hostile and to be working actively against Mr. Nash." In an editorial, the Herald advocates a guaranteed loan and says it hardly seems possible that political prejudice would be stretched so far as to deny a loan because a Labour Government is in office. “The city is blackmailing a Government whose only fault is that it is Socialist, despite the fact that New Zealand is already Britain’s host customer,” says the Sunday newspaper Reynolds News (which gives general support to the co-operative movement and to the Labour Party). ("Conversion of the loan at present has not, the slightest, chance of success. The bankers intend to demand itheir full pound of flesh, and not a I penny will be lent, the British Government refusing to sanction longterm credits while Labour rules. The nation is being hold to ransom in the interests of the British moneyed and trading classes. . "It is necessary to reveal the full ’ facts in order to defeat sordid I intrigue. Parliament can force the Chancellor of the Exchequer and the Governor of tlv? Bank of England to give New Zealand a square deal. The I Dominion has shown that it is wholeI heartedly behind its Government, and i therefore it is wrong for the British [Cabinet to step in between a selfgoverning Dominion and its leaders.”