HIGHER INTEREST

Hokitika Guardian, 10 January 1930, Page 3

HIGHER INTEREST

PREMIER ANSWERS CRITIC

By Telegraph—Per Press Association.!

WELLINGTON, January 9

Tlie Rt. Hon. the Prime Minister (Sir Joseph Ward) seated to-day, in connection with the new issue of 5.V precent. seciudi!ties':,>~JThe views 01. the Manager of one of the financial institutions in Dunedin,as reported in this morning’s newspaper are of interest, but they do not represent the general views held through the Dominion. , : . '

“As a contrast,” VSir Joseph Ward stated, “attention may be directed to the views expressed in another direction, that there would he no immediate effect on the mortgage rates.” He added that the increase*fropLs 1-8 per cent, to 51 per cent, was carefully considered, after taking cognisance of the past experience of investments from, all parts of the Dominion in Government securities, before a decision was arrived at.

In so far as the general money market is concerned, Sir Joseph pointed out that lie had already drawn attention to the unforseen contingencies that arose throughout -the world during the past few monlis, which have had a definite hearing on our borrowing, both abroad and in .tlie Dominion. The effect of ‘these financial repercussions, he said, has not been felt severely in New Zealand, and generally speaking the borrowing rates in this country are not as high as in the neighbouring countries. “Tlie Dunedin critic,” said Sir Joseph, “professes to lie well informed. and he asserts that, had I fixed a lower rate, the money required would he got all the same. Aly answer to that is that, since Februaiw last;‘we have been selling 1 over the counter’ securities at a rate of 5 1-8 per cent., nnd it was the falling off of investments throughout the country at this rate that influenced me in deciding to make the present rate'"oA per cent.” Sir Joseph further added That he preferred to rely upon;the actual .facts rather than upon tlie assumption of one who does not disclose his identity, and therefore cannot be judged as to his qualificatins or experience. Tlie Prime Minister drew attention to the '■■ireumsta.nce, already referred to, that during -the last six months the financial world in the United States. in England and in Australia had not been no—nnl. due to causes that are very well known, and so the Dunedin critic, who lias no responsibility from a public standpoint offers gratuitous advice which has to be accepted cum grano salis.

Sir Joseph concluded by stating that he had no intention of increasing the present lending ratfis to the workers or the settlers.