"KELLY GANG"

Evening Post, Volume CXXI, Issue 68, 20 March 1936, Page 10

"KELLY GANG"

MR. SAVAGE HITS OUT

-OX SIDE OF PEOPLE-

FLIGHT OF MONEY

PUBLIC ARE SAFE

Strong comment regarding statements in circulation, particularly in Auckland, that money is leaving New Zealand owing to the uncertainty that exists regarding the Labour Government's policy, was made to a '"Post reporter today by the Prime Minister (the Hon. M. J. Savage).

'"If there is to be a fight between the 'Kelly Gang' of Auckland and the people of New Zealand, then 1 know what side I will be on," said Mr. Savage. ';I will be on the side of the people of JScw' Zealand. 3 have been through this country, and I have told the people as clearly as words can make it that they arc perfectly safe so far as we arc concerned. O.ur object is not only to conserve the savings of the people, but to make it possible for them to save. It certainly lias not been possible for them to do that in recent years.

"We are being told now by some bank director whose name is carefully hidden that money is leaving New Zealand. I think I could name the director without any difficulty. He is prepared to wreck the confidence of the people of New Zealand in their own country in order to make an imaginary point against the New Zealand Government because it happens to be Labour. "My own feeling is one of greater confidence than ever. The good will of the people is there without any doubt whatever. The people understood our programme, and they are asking the Government to give effect to the promises that it made.

"We arc going to do that, and we are not going to smash anything, except the power of the 'Kelly Gang,' ami that can't be done too soon."

The statement referred to by Mr. Savage was made in Auckland yesterday, and was to the effect that the announcement made on Wednesday by the Prime Minister concerning the readjustment, of mortgages and the restoration of equities in land and homes had caused alarm and would stimulate the flight of capital from the country. "Mostly this money is going to Australia and South Africa, but I know of one particularly large sum that was remitted to England recently in spite of the adverse exchange rate," said one financial adviser. "The Government's policy, carried into effect, can leave no field for safe and remunerative investment in this country. The policy of soothing syrup cannot be expected to be devoured by a keenly-alert business community."