LOANS IN LONDON.

Waikato Times, Volume 121, Issue 20276, 19 August 1937, Page 8

LOANS IN LONDON.

If public interest has centred on matters of trade in connection with the extended visit of the Minister of Finance to Great Britain it is due to the fact that, in the statement he mado when he landed at Auckland. Mr Nash stressed these things. The unhampered marketing of the produce of the Dominion is so important that the community wanted to know what progress had been made to ensure satisfactory conditions. There were, however, other very important matters that came within the sphere of the Minister’s mission, and nothing has been heard of them. Indeed practically nothing has been heard of any financial discussions since the Minister left the country last year. There was the duty, described by the Prime Minister as ‘‘bouncing the hall an operation not generally known in financial circles, but connected in some way with the reduction of interest rates on loans outstanding in London. The Minister was to hold a strong position as the Government did not intend, unless for conversion purposes, to go on the market for funds. Nothing has been divulged with regard to developments along these lines. Mr Nash make a very emphatic defence of the credit of the Dominion when it was criticised by a newspaper in London, and has stated since his return that our credit is excellent. Beyond that little if anything of a financial nature has been mentioned, and much was expected. The Labour intention last year was that they would negotiate “with the British Government and overseas financial houses for the purpose of converting the overseas debt to a lower rate of interest.” As the sums involved would aggregate £158,700,000, or more than half of the total National Debt, the proposed transaction would be a huge one, although the average rate of interest on the loans is only about £4 7s per cent, sterling. It is the high exchange rate that makes the burden so much heavier. Last year the remittance of funds to meet interest charges cost the country £1,581,000 net and that was several thousands below the total of the 1 When the proposal was first discussed here critics stressed the fact that the loans were not in any way connected with the British Government, and that it would be necessary to negotiate with the holders of the scrip. As they must number many thousands, and there is no organisation empowered to act for them as a unit, it was difficult to see in what way Mr Nash would approach the problem. For that reason a statement with regard to the action he took would be exceptionally interesting. The proposed condition, if prices for produce did not improve, that the lenders should reduce the debts to the extent of the fall in prices has not since been mentioned; indeed, the whole thing has had very little mention. Probably Mr Nash will have something to report when financial matters come before Parliament, but if the information should not be volunteered then it will be the duty of some member to ask for it. It was not one of the minor objectives of the mission and some review of what was done should be published as soon as possible.