LOAN & CREDITS

Wairarapa Times-Age, 10 July 1939, Page 5

LOAN & CREDITS

NEW ZEALAND NEEDS

SERIOUS VIEW TAKEN IN LONDON.

ANTICIPATED DEPLETION OF FUNDS.

By Telegraph—Press Association —Copyright. LONDON. July 8.

It is understood that an abrupt decision by the New Zealand Finance Minister. Air Nash, to postpone his departure is dm* to a desire to await a reply from Mr Savage as to whether the Government is satisfied with an offer by Britain of arms credits and export credits facilities.

It is held in London that the extension of such credit facilities would at least serve to avert a default in commercial payments, which otherwise is regarded as inevitable in the next few months. The trade balance normally swings against the Dominion at this time of the year, and consequently, despite in • tensification of the Government re striction of imports, banking circles believe there is no possibility of the London funds lasting till the export season opens in January. Default in the commercial payments would intensify the major problem of finding funds to redeem the £17,000000 loan.

The greatest obstacle to the success of the recent negotiations, says the “Financial News” has been the economic weakness resulting from Mr Savage's programme. Som'e modification, therefore, is regarded as essential if confidence in New Zealand credit is to be restored. It is strongly rumoured that a redemption loan will be temporarily effected by recourse to short term borrowing, similar to the Australian method of some years ago. It would be costly, but launching a long term loan is virtually impossible. Mr Nash today farewelled his wife, who is going to America aboard the Aquitania from Southampton. He will follow aboard the Queen Mary on July 12, rejoining Mrs Nash in San Francisco after flying across America. MR NASH’S PLANS DUE TO REACH AUCKLAND ON AUGUST 4. (By Telegraph—Press Association.) WELLINGTON. This Day. The Minister of Finance. Mr Nash, will leave England by the Queen Mary next Wednesday night for the United States and will connect at San Fran'cisco with the liner Monterey for Auckland. Advice to this efl'ccl was received by the Prime Minister, Mr Savage, yesterday. * “There has been nothing definite so far,” said Mr Savage, when asked whether Mr Nash had made any final ar rangements as regards finance. "But things seem all right. I expect to hear something definite before he leaves London.”

The Monterey is scheduled to arrive at Auckland on August 4.