WAR LOAN INTEREST

Hokitika Guardian, 28 November 1929, Page 6

WAR LOAN INTEREST

LABOUR MINISTER. EXPLAINS

[United Press Association—By Electric Telegraph.—Copyright.]

LONDON, Nov. 27

The Alinistor of War, Air Tom Shaw, has explained his reference to the AVar Loan interest which he made in the House of Commons during his speech on the Unemployment Insurance Bill. Air Shaw has stated to the Daily Herald: “Everyone has known that we borrowed in a time of inflation, and that we are now repaying in money of a greatly higher value. 1 am simply stating the fact. .It may not be' possible to undo the evil now. Maybe the attempt would do more harm than good, hut I am tired of those people 1 who protest every time that a million or two is spent on vital social services,' and who yet 'ignore the fact that hundreds of millions are being distributed through tliis policy which pays for inflated money- at deflated rates.” The Stock Exchange is not alarmed at Air Shaw’s statement in the .Commons. It considers that the Government would only attempt to. , reduce the interest rate by legitimate' means such as voluntary conversions.

The prices of. practically all Government stocks opened lower. being marked down as a precautionary measure to prevent sales by nervous holders. The Five per cent AVar Loan, to which it was 'obvious that Mr Shaw referred, fell three-six-teenths to £99 15s.