Government Borrowing.

Gisborne Herald, Volume LXVI, Issue 19985, 10 July 1939, Page 14

Government Borrowing .

Sir, “Truthful” refers to millions having left the country. We have been told by some of the Nationalist speakers that the Coalition had accumulated £40,000,000 in London. The famous Lee letter gives the amount as £24,000,000. The Labour Government has been accused of borrowing more money overseas than any other Government. This statement credited the Government itself with using all the overseas funds through the Reserve Bank. How can this be so if, as

“Truthful" says, millions have left the country? Sir Joseph Ward, in the Wellington Town Hall in 1928. stated that Mr. Coates had borrowed more money overseas than any other Prime Minister and gave the amount as £29,000,000 odd in three years.

Immediately after the last election a prominent Nationalist remarked to a friend of mine that “in six months we will bring this Government to their knees.” On being asked the method, he replied, “by removing overseas funds.” Another later claimed that they had removed £15,000,000 and another remarked that it was nearer £25,000,000.

Can anyone tell me the following: (a) the amount of the London sui.pluscs; ob) the amount used to poy for traders' imports; tc) the amount used to pay for Government imports: (d) the amount used lor debt services; and <e) the amount used for transfers of capital.. Of course there arc other

aspects to be taken into consideration, but at present I am referring to the London funds accumulated by the Coalition.

•Reference 'has been made to borrowing, I admit that I heard Mr. Savage say it was not his intention tc borrow overseas, but 1 certainly did not hear him say anything about internal borrowing. All sorts of rumours are in

circulation about the amounts Mr. Nash is proposing to borrow, but so far nobody can Quote the actual amount required. If he lias to borrow £17,000,000 to repay a debt it is a debt contracted by previous Governments, and something that cannot be avoided. Sixteen millions is tiic amount quoted for a defence loan. Whatever the amount may prove to be. it is something wholly unforeseen four years ago, and as the defence requirements in the way of armaments, equipment.

aeroplanes, etc., will be" imported from England, surely if follows that England is the logical place to float that loan, LABOUR