PREMIER’S APPEAL

Hokitika Guardian, 22 March 1933, Page 6

PREMIER’S APPEAL

FOR THE LOAN CONVERSION.

£93,060,660 CONVERTED

(Per favour of Government)

WELLINGTON, March 22. An appeal to the Government bondholders to give their unbounded sup-, port to the conversion scheme, and to ensure its complete success was issued this morning by the Prime Minister (the lit. Hon. G. W. Forbes). “From a. combination of causes, the Dominion is going through m serious financial and economic crisis, that is adversely affecting more or less every one of our people,” said Mr Forbes. “These causes are largely beyond our own control, and have (arisen, principally because the prices of our products sold on the world’s markets hlave been drastically reduced. The result has been ta tremendous shrinkage in the- national income, producing ■I deficit in the budget, an unprecedented amount of unemployment, and depression in every sphere of our business life. “During the past two yews the Government hag taken far reaching measures to. remedy this situation; but by themselves they have proved insufficient to counteract the .steep decline in our income, and to enable trade and industry to: be carried on with any degree of success. As we all benefitted during pur national prosperity so must we now a ll share in. our day of national acl.vetv.ity. All people receiving money from the public purse had to he asked to share in the general sacrifice. Pensions, salaries and wanes have lteen reduced, and to-dav, however much we mlvy have wished to avoid it, we have had to appeal to all Government bondholders within New Zealand to accept ;a conversion of their stock to interest rates 20 per cent, lower than the existing rates. Bondholders haye not been singled out in our 'appeal for self sacrifice, and what wo have asked of them we believe to bo essential for the country’s good. “The conversion has involved film huge sum of £115,000,000, and represents for the New Zealand Government an undertaking of ui’parallellecl magnitude. It is not simply an expedient to relieve cur own' budgeting problem, but it is part of a wider plan to reduce intere-t rates in the Dominion to !a new low level and so to ease the ; burdens which are stifling many oF our industries. The effort we a fe making iis 'a. notional' effort, for every citizens stands to gain .from ' this great public -saving, and from the benefits which it will confer on New Zealand. The holdings of' the debt, 'large, med-

-ium, and small, ape so widespread, in every section of tlie 'community that it is-'impossible to distinguish between • ■the holdeKs / 'ol^ , Go !J vdriYnie'iVi (! bonds’ th.e, nfation as a : whole. Whatever to-". suits the nation will assuredly benefit;''' also tlie holders" of Now Zealand'Government steo.k, ' '■ “Representatives of public opinion, of . every ' shade are united in commending the scheme. Bankers, stook-

brokers, insurance ebnipanaes,'leaders of industry and commerce are .'all agreed that the Government’s plan is wise and courageous, bringing relief to the national budget, and hope of new chanccis for trade, and yet making a fair business offer to the investor.

“As the Prime Minister, T am speaking-* of the national interests which demand that every bondholder should convert. As for the other girle of the bargain I think it may he shad that the terms chosen a re fair and equitable as between the bondholders and tlie country,' end the fact that the shrewd and instructed financial opinion, represented by the banks and

large commercial firms, who have been the first to approve and adopt the scheme, should re-assn re smaller

investors that tlice terms indeed are fab; and equitable. We are now three days from the end of the seheine, and nearly £93,090,000 worth of stock

has been voluntarily offered for oon-

version, which means that there is still more than £-22,000,000 to lie accounted fir in those last few hours if the scheme is to be a, complete success. ■ “The 'feet- that the notices of dissent 6?ver only the negligible amount of £300,030 indicates that the people of New Zealand are behind their Government in this national effort. Apparently a great many small investors, knowing that their .afse-nt ' will be taken for granted «o long as they do Hot dissent, have not troubled so far to take an active (part in converting their bonds. I must urge them not to accept passively the sacrifice that is 'asked of them, but to do as the majority of bondholders have already’ done, and willingly offer their stock’ I to the Government for conversion. | “I felt that I cannot over emphasise tiie Value of an overwhelming response from our people in favour of conversion. ‘lt will give .strength to the Government at home and abroad. It will improve our credit and prestige, and in doing both these things it will prepare the way for a return of prosperous conditions for all our citizens. I' appeal to Government bondholders, as I have appealed to other sections of the community in the past to help, bring hack prospertiy, to make the •wheels of industry turn again, and to relieve their country of burdens which j it lias borne honourably, though they linvo oppressed it sorely.”