The Guardian And Evening Star, with which is incorporated the West Coast Times SATURDAY, JULY 30, 1932. CONVERSION SUCCESS.

Hokitika Guardian, 30 July 1932, Page 4

The Guardian And Evening Star, with which is incorporated the West Coast Times SATURDAY, JULY 30, 1932. CONVERSION SUCCESS.

The grieiat response made to thte British Government’s appeal to holders of war stock h « been of a very g.nerous nature and hafci had a tonic effect, in Britain and throughout the world, including New Zealand whe 'e the stock exchanges have felt the bracing effect. It is wonderful to reflect that, within nine months of the most serious financial crisis, in which the Government’s credit was ddepl'y involved, All-; Neville Chamberlain has been able to make the venture with such gratifying results. That eminent authority, Sir Whiter Layton, yesterday described the conversion as "a key-move to end .the. depression.” By its influence ou thei price of money . and the lklief (amounting to £23 millions annually) afforded to the Budget, the scheme deserves such a description. Its success is bound to enhanco British credit at Home and abroad ant assist in restoring confidence. TIL conversion loan has been considered as a key-move in another direction however. Its success has been looked upon a'a an essential' condition, precedent to , the opening of another campaign for public economy in Britain. While this huge block of 5 per cent. sto>;ik remained, and its holders actually gainfed while most other classes lost by falling prices, many argued it would be unjutet to- cut further into State spending in other directions. Now since a large ‘ proportion of th! = State’s creditors, whether from motives /of 'Sentiment or business, are accepting ■ a 30 per cent, reduction, the way is opened for clearing the decks in other directions. A strong body of British pub ic opinion is already ranged for such an effort. In the House of an unofficial commitee of 150 members has teen set up to study ' methods of economy and press . for their- application. These members .simply represent tine feeling in the electorates. It is felt that the demands of. the State are weighing' down the -nation and keeping it down. Relief is an absolute essential of national recovery. The. case was put in the Budget debate by Mr L. S. Amery, who. said The whole conception of taxation for revenue wasybased upon I the assumption that national and total .taxation could not be large enough to exercise any perceptible indirect influence upon the-course of in* dUS try, In a large measure l , and for fully ia g® novation, after free trade was introduced, that aesumptiop held good. To-day oue-third of the .whole product of industry Went, in taxation, and that was a burden-that industry could not bear.