OVERSEAS DEBT

Hokitika Guardian, 20 December 1932, Page 2

OVERSEAS DEBT

PAYMENT OF INTEREST. WELLINGTON, December 15. The opinion that the real problem with which Cabinet had to deal- at the present time was the burden of the Domiu'ion’s overseas debt commitments was expressed by the Hon. A. D. McLeod in the course of an interview.

The basis of the trouble, he said, was that New Zealand’s overseas public and local body debts now amounted almost to £200,000,000 .If New Zealand were not to default exported farm produce had to pay practically the whole of the interest on that huge amount. Unless further borrowing were resorted to the question arose whether exports could continue to carry the burden. Farmers generally were not wilful defaulters, and they did not desire to be. However, they could not continue to pay the amount of overseas interest needed with their farm produce, and at the same time provide their full share for the Dominion’s internal obligations without material assistance from all sections of the community, farmers could not continue under the present circumstances much longer, and all round default and collapse was more than a possibility. It was with no sense of satisfaction, said Mr McLeod, that he and those in the group associated with him had last session supported legislation which j amounted to direct repudiation of written contracts. They had no desire to lie called on again to do the same thing, lb was for this reason that they had raised the exchange issue, j Business interests now had a chance of rallying behind Cabinet and Parliament, and assisting in every effort to i help the Dominion. I