OUR CREDIT HIGH

Dominion, Volume 8, Issue 2275, 8 October 1914, Page 9

OUR CREDIT HIGH

; FINANCIAL SITUATION HON. J. ALLEN INTERVIEWED v _ An interesting interview on the financial situation in New Zealand was given by the Minister of Finance (the Hon. J. Allen) to a Dominion reporter last night'. Mr. Allea was asked whether ho could say anything . about tho steps taken by the Government to repay tho loan falling due in December next. "Aβ I stated in tho House yesterday," said Mr. Allen, "tho loan is held by big financial institutions in London, and they won't sell, they won't renew, and they won't convert. I am not making that statement without abundant evidence. I have had inquiries made again and again as to whether the holders will convert or renew, but the answer was always , , the same —'No. , Then I tried to purchase on our own account, and I did manage to purchase some £300,000 worth of these debentures before tho war broke out. In fact, I had begun to buy a year ago. These purchases have reduced tho amount due below three millions. Since the war broke out I have tried to buy more, but I have only been able to buy some £400 worth. Since the holders—the big financial institutions I have referred to —won't renew and won't convert, we are therefore in the' position of having to redeem this loan in December. "Tho only question is, how are we going to borrow to redeem the loan? I can't at this time, when the war is on, and when no one is prepared to lend money for long periods, issue stock except at a price which would be too high j for the country to pay. At least, I don't think I can. 1 don't think I can issue debentures either, but there is another means which I am not prepared to disclose at present, a less costly means than either debentures or stock, to make temporary arrangements for meeting the loan in December, and I have no doubt that we shall be able to carry them through!. Everything has been very carefully watched, and. we are not losing a single opportunity. I don't think the country need be at all disturbed about it. I am confident myself that we shall be able to make quite satisfactory arrangements, if they are only temporary. .' "It , is l very gratifying to know that the credit of New Zealand is standing higher to-day, as compared with that of the other Dominions, than it has ever done before. And if you ask me. the reasons, I say that one of the reasons, I knoiv as a positive fact, is the way we dealt with the strike; another reason 'is the way we have dealt with finance generally; and another reason is that when it came to a test of helping the Empire in her hour of need, wo were tho most prepared of. all the Dominions to do it. People v at Home thoroughly appreciate that. I have full | evidence of that fact. There is no other part of the Empire outside of Great Britain that was so ready with assistance to the Mother Country «p New Zealand was. Although I was blamed for organising the expeditionary force —I mean, of course, everything except the enrolment of volunteers —it turns out now to have been a great asset to Now Zealand that this preparation was made. As ,a matter of fact you may say that the arrangements', that have since- been made by the other Dominions are based upon what was done in Now Zealand in the early part of 1913. "The country may. feel, thoroughly well satisfied that we have made especially good arrangements for our war loan, up >• the amount of £2,000,000. I am' not at liberty to disclose what tho arrangements are, .becauso they are confidential at present, but as soon, as I way, I shall let the country know what they are. . ' • ; • ■ ■.'.."•' j "I have already told the public that, we can see our way to carry on tho public works of the country at the same rate as we arc carrying them on now. Of course ttie people must understand that they cun't have it every way. Wo can't open the door to public bodies borrowing all the money they may want, because in my opinion it is more important to have the public works of the country going on, than to lend large sums to public bodies. . We are prepared to meet all our commitments to public bodies, but wo are asking local bodies to postpone the works for which they are borrowing if they can conveniently do so. /Everybody has to help in the interests of the country generally at a time like this."