CAUTION IN FINANCE

Sun (Auckland), Volume III, Issue 816, 9 November 1929, Page 6

CAUTION IN FINANCE

DOMINION’S BORROWING POLICY MR. STEWART’S FORESIGHT Press Association PARLIAMENT BLDGS., Friday. The Dominion’s financial position was discussed again in the House for the final time this session today. Mr. W. Downie Stewart stated that as he would not again have the opportunity of doing so this session he wished to raise his voice against the borrowing policy of the Government. In his opinion this policy was not a wise one. The Government had been frequently blamed during the session for breaking its election promises, but he would have readily forgiven them for breaking their election promise of expanding their borrowing policy. The whole financial situation was sufficient to warrant caution. English newspapers had been pointing out that New Zealand should be careful at the present time, in opening up big public works schemes, as any serious misjudgment would react unfavourably on New Zealand’s credit.

Mr. Stewart congratulated the Government on the success of its recent loan conversions, and in conclusion reviewed the events of the session, and stated that as & result of goodwill for “the very estimable gentlemen on the other side,” the House had managed to bolster up the Government, but he didn't think it could last another session. Mr. F. Langstone (Waimarino) stated that the present Government had reaped the benefit of Mr. Stewart's wisdom iu forestalling developments on the London money market. He went on to advocate a State banking system.