LOAN CONVERSION

Hokitika Guardian, 24 August 1932, Page 3

LOAN CONVERSION

STATEMENT BY MR FORBES

FINANCIAL EXPERTS TO VISIT

LONDON

WELLINGTON, August 22

Highly important discussions will •take place shortly in London between the New Zealand Minister for Finance (the Hon. W. Downie Stewart) and British Cabinet authorities and Treasury officials. It is likely that as a result of Mr Dowiiie Stewart’s visit to London the whole question of the Dominion’s overseas debt charges and more particularly the interest rates on the ■loans which it is considered possible” to convert will be brought under review'; 1 .

[ 'Referring to Mr Downie Stewart’s mission -ill rep’y to a question, the iPrjme Xfiiifster (Pit. Hon. G. W. Forbes) ; saiid‘ the Government was of the opinion that much might be done with the object of easing the burden of' overseas debts. The Minister for Finance would have an invaluable opportunity while in London of establishing direct contact with financial authorities, and Hthough the exact nature of the discussions to take p’ace could not be iridirpted, it was possible .that New Zealand’s annual interest,"bill might be re-.-cluced without creating undue disturbance and without affecting the Dominion’s credit in London.

Funded war debt.. j The possibility of an Australian conversion loan had recently been mentioned and it might be advisable ' fof i'bm-ihion loans generally to he reviewed with the object of securing isome general relief. There had never been a time in the'history of the Empire when close contact between its component parts had been more desirable, and much might be achieved if the Dominions worked in concert on these highly important questions. Th? ’lrrt dated loan of £5,000.010 raised in London in June Of dart year at 5 per. c" .would mature iff 1931. Mr Forbes added, and it might be found desirable to convert this. Mehtioh had been made -some time lag-0 of the-possibility of converting P>w--1 Zealand’s funded war debt of £24,000,000, but, It had to /be remembered that only £ll 100.000 of this was included in -the £2,000,000, GOO British war -loan conversion, and at. present the total after allowing for repayments' was £10.210,000. 'This £11,100,000 was borrowed from the British Government, but the British bondholders would be directly concerned in the conversion of the remainder. of th° ■Oi'I.OOO.OOO.