CONVERSION LOAN

Rotorua Morning Post, Volume 2, Issue 275, 15 July 1932, Page 3

CONVERSION LOAN

INTOLERABLE BURDEN OF HEAYY INTEREST LOAD IN AUSTRALIA. A WAY OUT. Addressing the British Chamber of Commerce recently, Viscount Elibank observed that interest is in default on 75 per cent. of the foreign loans issued by Britain in the, last ten years, while during that periodTthe Dominions have F'aid every penny. To Australia the statement is applicable, and it i's the hasis of her case for seeking an overseas conversion loan, says the Melbourne Age in a leading article. That case is further strengthened by considerations of justice- The weight of the capital and interest load is made more intolerable by the reflection that both 'have been doubled in favour of the creditor without a scintilla of benefit to the debtor. By the phenomenal undreamt-of fall in commodity prices the aspect of the interest problem has been completely altered over the whole world. It cannot be too freely confessed that in the years past Australia spent wastefully, she borrowed extravagantly, trut there is no reason to suppose that she would not have triumph'ed unaided over all her distresses except for the catastrophic fall in the price level. From causes for which she is in no sense blameworthy she is getting for much' that she produces less than it costs to produce it. In any contemplated external action there can be no thought of comparison, 'but to a' friendly, reasonable form of approach the ' British bondholders would probably be found quite ready to make the wished-for response.' The Commonwealth Government should certainly not any longer refrairi from giving them the chance.