AT A DEADLOCK

Wairarapa Times-Age, 29 June 1939, Page 7

AT A DEADLOCK

MR NASH AND LONDON FINANCIERS ATTEMPT TO RAISE £33,000,000 REPORTED. RAISING OF SUCH A SUM IMPOSSIBLE. By Telegraph—Press Association—Copyright. LONDON, June 28. The City editor of the “Daily Express” understands that a dead-lock has been reached between the New Zealand Finance Minister, Mr Nash, and the Governor of the Bank of England, Mr Mortagu NcVman, in regard to New Zealand finances. He says that Mr Nash wants to raise £33,000,000 sterling, which is a lot of money for a country with a -population of 1,620,000. He adds that Mr Norman and City heads not usually sponsoring New Zealand loans point out that it is impossible to raise such an amount in the normal way in view of New Zealand’s depleted sterling resources, the current low prices for wool and dairy produce, and the increased scale of New Zealand social services. The “Manchester Guardian’s” City editor, commenting on the fact that Mr Nash has still not completed his negotiations, considers that the New Zealand loan requirements cannot be dealt with as if they were a mere matter of market haggling. “The defence loan concerns high policy, while the conversation can only be tackled when the New Zealand and British Governments came to an understanding about the export trade to Britain, on which New Zealand is able to rely,” he states. “Perhaps special trade credit arrangements such as are abundantly granted to foreign countries, combined with a long-term loan operation, may be necessary.”