LONDON SURPRISED

Nelson Evening Mail, Volume LXIII, 25 July 1929, Page 9

LONDON SURPRISED

AT Sll: JOSEPH WARD'S STATEMENT (By Telegraph) (iCtoin -The Mail's" Parliamentary Reporter) WELLINGTON, 24th July. The effect in London of the mystery statements of the short session regarding Now Zealand loans was referred lo by the Hun. W. Downie Stewart last night. He quoted from a letter which lie bail received from a gentleman _in London well versed iu finance. "The references by Sir Joseph Ward to the dillicult monetary problems awaiting solution which ' had prevented hini from getting a. Hying start (stated tho writer) excited as much curiosity in London as in the House of Representatives. We, of .course, could see that, ii was a politician's game, but every city editor.of repute made some attempt lo solve Ibo mystery. Some of the guesses were laughably fantastic. The "Financial News." for instance, suggested that the trouble might bo due to possible litigation over the Armstrong, Whitworth contracts, which wore, of course, settled long ago. As soon as Sir Joseph's difficulties were revealed lo a gaping world. London said nice things about New Zealand, that she. was always a welcome borrower, and promptly forgot all about the business. "Si.' far. London has taken no particular' notice of the grandiose loan proposals which Sir Joseph Ward presented to the electors. She will wait and see. My own opinion is thai if New Zealand external liabilities are piled up al tho rate of seven or eight millions a year wo shall bo lucky if we escape criticism. As yon know, Australia has been violently attacked in this centre, and her credit has suffered badly. Not oaily does Australia pay more for her money, but investors will not apply for Commonwealth Stock on the terms of tho prospectus, but wait until it drops to a discount in the open market. The discount is a gift to them. Tho underwriters, however. have to carry the baby. How long will they continue to do so? 1 only mention these matters in order to show what happens when public confidence is at all shaken, and we must be vo>y careful not, to weaken London's wonderful faith in the stability and sagacity of New Zealand people." Tho Prime Minister: "Who is the writer?" Mr Stewart : "A correspondent of mine.'' Mr Stewart- concluded his speech b\- urging the Government to endeavour to curtail its loan commitments so as to avoid reaching the position of some other Dominions.