AN INTERVIEW

Hokitika Guardian, 18 September 1933, Page 6

AN INTERVIEW

WITH THE HON. G. W. FORBE'S. (Per Press Association—Copyright), WELLINGTON, September 18. Interviewed the Hon. G. W. Forbes said his experience at home led him to believe that New Zealand produce prices had fallen lower than were really justified, hut lie was glad to say that with returning confidence and improvement in the general trade position in the United Kingdom, the demand for our produce was improving, with a consequent rise in prices, Questioned regarding New Zealand loan conversions, Mr Forbes said that a short dated five million loan was falling due next year, and the convei* gion of that issue would ho taken up by the Finance Minister. Loan conversions were still under official control, and unless the time was favourable, there was little use in going on the market. He had no doubt New Zealand would be able to secure as favourable terms as were secured by Australia.

On the question of general conversion of New Zealand’s indebtedness, Mr Forbes said this was wrapped up with the question of increasing commodity .prices. The matter had been discussed with British ministers, and it was agreed that they should endeavour to raise price levels, in order that they might carry their indebtedness. If commodity prices improved, we would be able to pay our way, and the same necessity for a general conversion would not exist* Referring to pegged, exchange, h, 0 said the general view at home was that considering the seriousness of the Dominion’s internal position, the action taken was very moderate. “During my visit to England, I was asked questions as to the Government s intention regarding the exchange ra c. I told them that the Government had acted as it had done in order to restore the equilibrium for fanning or exporting , industries, and there would he a. general reduction of exchange as the beneficial effects of the Government's policy were felt. I diseased this question with bankers at home, and they said to me, ‘‘Don t be in a hurry to bring it, down.”