AN APPEAL

Hokitika Guardian, 8 March 1933, Page 2

AN APPEAL

BY MR W. DOWNIE STEWART. TO SAVE SMALL INVESTORS. WELLINGTON, March 6. A suggestion tint the Government should approach the.banks and induce them to underwrite one or two million pounds to save small investors in Government securities whose livelihood was being imperilled by the loan conversions, was made by Mr W. Downie Stewart, former Minister for Finance, when speaking in the second reading debate on the Finance Bill No 3 in the House this evening. Mr Stewart said he had n« deep* concern for the wealthy insurance and shipping companies wlio were agreeing to convert on broad grounds, but he certainly felt concern for the small bondholders.

The bill should not go through without provision being made for the Public Debt Redemption Board to buy out small investors. He regretted very much that the Government liad not continued with its voluntary conversion scheme instead of taking the easy course and imposing penalties. He still hoped the' Minister for Finance would find some means, through the banks or otherwise, to ensure that the people to whom the conversion meant the difference between a livelihood and starvation could bo bought out, Mr Stewart said lip did not know If the Treasury bad prepared an estimate of the number of small investors who would be affected, and lie bad letters from small investors whose cases should be met even if that involved extra taxation on the wealthier sections. He did not know whether the Minister could indicate the ability of the Public Debt Redemption Board to buy. out small investors, but lie certainly thought something should be done. For the Minister to say it was necessary to put the whip on shirkers was no answer to the small investors.

“We have been told about what Britain lias done and what Australia has done,” continued Mr Stewart. “I do not disergard that, but I believe that as long as New Zealand can keep faith with the people who Have invested their small savings in Government bonds, it is our duty to do it. If the larger holders for reasons of patriotism or for any other reasons are willing to accept 4 per cent., I say ' all credit to them, but they must not overlook that their action may warrant the Minister for Finance'in overlooking the real facts that lie behind the problems of the small and moderate investors. If the large bondholders: want to act on high- patriotic principles, they wll net only accept 4 per cent., hut they will also help the State to keep faifli with small holders. “I do not want my remarks to be misinterpreted. Everyone will wish the'Minister for Finance success in bis undertaking, but I cannot dismiss from my mind the fact that Into the net are being swept, people whose life savings are at stake. It me urn an enormous tiling to them. T want the Minister to try to meet these cases—to make provision in this hill so that they will not have cause to complain that they have been betrayed by t 11? State.”