GOVERNMENT STOCK

Evening Post, Volume CXIV, Issue 121, 18 November 1932, Page 6

GOVERNMENT STOCK

QUESTION/OF^NTERESf

v RATES

The Government is considering the question of lowering the rate of interest on Government stock. This information -was given in the House of Representatives to-aay by tho Prime Minister (the Bight Hon. G. W. Forbes) in reply to an urgent question by Mr. J. Coimolly (Government, Mid-Canter-bury). " -, •Mr. Connolly 'asked if the Government would take • action at the earnest possible opportunity to reduce the rato of interest on future issues of Government bonds'and debentures to a louver rate than 5 per cent., and also give instructions to the Local Government Loans Board not to approve of any loans which did not provide for _a similar reduction ,-in the rate of interest. If this could not be given effect to -without'a' further reduction in deposit rates'generally, would tho Government take the necessary steps to obtain the desired result? Cheap money was essential to the welfare of the Dominion and its people, added Mr. Connolly, and while' the Government was paying 5 per "cent, interest on new stock, it could not be expected that the banks and other, lending institutions could lower the rates to the extent required at the present time': It appeared that Australia and other countries were doing better than New Zealand in this ,Tespect.- ~;..,. . . .:,..., The Prime Minister replied that the matter was receiving^ the consideration of the. Government;-.' ' ' •- Mr. H. T. Armstrong. (Labour, Christehurch East): And the banks.