NEW ZEALAND FINANCE

Waikato Times, Volume 105, Issue 17612, 17 January 1929, Page 2

NEW ZEALAND FINANCE

STATEMENT BY PREMIER. REPLY BY MR DOWNIE STEWART. ROTORUA, Wednesday. : Several references were made in the Prime Minister’s statement last .week regarding the recent loan to previous proposals l'or the Issue of a cash 1-oan of £5,000,000 and a conversion loan of £J0,000,000. These were described as “proposals of the Minister of Finance (my immediate predecessor)” and Sir Joseph Ward stated that he finally decided “to make a material alteration in the proposals,” increasing the amounts by £2,000,000 each. A statement of his position in regard to the matter was made to-day by the Ron. W.,Downfe Stewart, Minister of Finance in the Reform Government, who is at present at Rotorua. “Sir Joseph Ward’s statement on the loan transactions has been interpreted ,by some newspapers to mean that I , had proposed to noise £5,000,000 and ,to convert another £10,000,000 of the 1929 maturing debt," said Mr , Stewart. “This is incorrect, as I had ; made no proposals. “What actually happened was that in the middle of the election campaign our London financial advisers cabled suggesting that we should convert another £10,000,000 of the 1929 maturities and also borrow In anticipation of our next year’s loan requirements, for reasons stated by them. As the latter proposal would Involve borrowing twice in one year, and was a marked departure from our usual procedure, I cabled to ascertain when London considered a decision should be made, as we were In the middle of the election campaign. Their reply was that if action .was taken by January It would meet the case. When the election results were known I considered it would be improper for an outgoing Government to prevent the new Government making its own decision .on so Important a transaction, or to tie their hands, when there was ample time for Sir Joseph Ward to consider how the proposals would Work in with his own loan proposals. Suggestion Unfounded. “It .will be seen, therefore, that the proposal emanated from London- and not from me. The suggestion in some papers that I had known the position months before the election is entirely without foundation, also the accusation that I Had misled the electors as to the high credit of New Zealand, and that I had embarrassed my successor. Sir Joseph Ward’s statement shows clearly that this was not so, and the chief correction I wish to make is as above. “It should also be noted that the £7,000,000 raised by Sir Joseph Ward are for Public Works. If, in addition, he raises for State advances from £6,000,000 to £8,000,000, according to' his election speeches, some idea of the annual borrowing can be estimated. Moreover, apparently the State advances loans are to be borrowed locally and not In London In the meantime."