PREMIER'S APPEAL

Rotorua Morning Post, Volume 2, Issue 488, 23 March 1933, Page 5

PREMIER'S APPEAL

i "Post")

CQNVERSION LOAN VALUE TO COUNTRY'S CREDIT OF ASSENT TO PROPOSAL. THE SMALL B ONDH OLDERS .

(Speeial toi

Wellington, Wednesday An appaal to- Government hond-, h elders to give them unbounded supP°rt to the conv-ersion scheme and ensure its complete 'success was issued this morning by the Priipe Minister, Rt. Hon. G. W. Forbes. "From a combination of causes, the Dominion is passing through a 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 control and have arisen p'rincipally ,beeause the prices of our products, siold on the world's markets have been drastically redueed. The result has been a tremendous . shrinkage in the national income producing a deficit in the budget, an unprecsdented amount of unemployment and depression in every sphere of our business life." iGovernment MeaSures. During the past twoi yelars, the Government has taken far-reaching measures to remedy this situation, hut j by themselves, they have proved insufncient to counteract the 'steep decline in our incomes and to enahle trade and industry to be carried on with any degree of success. As we -ia.11 benefitted during our national prosperity, so must we now all share in our day of national adversity. All of the people receiving money from the public pnr.se had to be- asked to share in the general sacrifiee. Pensions, salaries and wages have been redueed and to-day, however much we may have wished to avoid the step, we have had to appeal to all Government bondholders within New Zealand to iaccept a conversion of their stock to interest rates 20 per cent. lower than the existing rates Not Singled Out. "Bondholders have not been singled out in our appeal for self sacrifice and what we have asked of them we believe to he essential for the eountry's good. The conversion has involved the huge sum of £115,000,000 and representsi, for the New Zealand Government, an undertaking of unparalleled magnitude. "It is not simply an expedient to relieve our budgetary problem but it is part of a wider plan. to reduce interest 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 are making is a national effort for every citizen 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, medium and small, are so widespread in every section of the community that it is almost im-po-ssible to distinguish between the holders of Government bonds and the nation as a whole. "Whatever benefits the nation, will assuredly benefit also the holders of New Zealand Government stock. Representatives of public opinion of every shade are united in commending the scheme, jhankers, stockhrokers, insurance companies, leaders of industry and commerce are all agreed that the Government's plan is wise- and courageous, bringing relief to the national budget, hope of new chances for trade and yet making a fair business offer to the investor. National Interests. "As Prime Minister, I am speaking of the national interests and unquestionably the national interests demand that every bondholder should convert. "As for the other side of the bargain, I think it may be said that the terms chosen are fair and equitable as between the bondholders and the country and the fiact that the shrewd and instructed financial opinion represented by the banks and large commercial firms has been the first to approve and adopt the scheme, should reassure smaller investors that these terms indeed are fair and equitable. 'We .are now three days from the end of the scheme. Nearly £93,000,000 worth of stock has been voluntarily offered for conversion which means that there is still more than £20,000, 000 to be accounted for in these last few hours if the scheme is to- be a complete success. The fact that the negligible amount of £300,000 has not offered indicates that the people of New Zealand are behind their Government in this national effort. Apparently _ a great many small investors, knowing that their assent will he taken for granted so long as they do not dissent, have not troubled so far to take an lactive part in converting their honds. I must urge them not to accept passively the sacrifice that is asked of them hut to do as the vast majority of bondholders have already done and willingly offer their stock to the Government for conversion. I f eel I cannot over-emphasise the value of an* overwhelming response from our people in favour of conversion.1 It will give strength to the Government at h'ome and abroad it will improve our cpedit and prestige and in doing both these thiiigs 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 thepast to help bring back prosperity, to make th'e wheels of industry turn again and to relieve their country of burdens which it has borne honourably though they have oppressed it sorely."