HUGE INDEBTEDNESS

New Zealand Times, Volume XLVI, Issue 10607, 4 June 1920, Page 5

HUGE INDEBTEDNESS

SIGNS OF A DEPRESSION. INCREASED EXPORTS NECESi SARY. “The country to-dav has a gross debt of over 200 millions,” said tho Premier (the Rt. Hon. W. F. Massey) when speaking yesterday to delegates of the New Zealand Returned Soldiers’ Association. Within tho last few years our expenditure had gone up on account of interest and sinking fund and pensions by seven millions per annum. It was going up every day. The cablegrams every day report falling prices. It was all very well to say, os ono paper did, that the fall only affected settlers. It affected everyone in the country, soldier settlers included. He was glad that in many eases soldiers were on a basis of being able to sell out at a profit if they were allowed to sell, but it was not wise to allow them to sell yet, though they would have the freehold in time. The financial position he had statqd was what they wore up against. They must go carefully, and quietly increase exports and discourage anything like a boom or they would have trouble with falling prices. They could not go on the London market to borrow money. -The British Government was paying 6 per cent, for long-dated loans, and what chance would New Zealand have? Whatever money they required must come from New Zealand, and to get the money they must keep their exports above imports.