RESERVE BANK

Ashburton Guardian, Volume 56, Issue 17, 1 November 1935, Page 8

RESERVE BANK

FALL IN PRICE OF SHARES.

MR. COATES’ OPINION. (Special to the “ Guardian.”) AUCKLAND, October 31. The fall in Reserve Bank shares was the subject of comment to-day by the Rt. Hon. J. G. Coates. Shares were sold on the Auckland Stock Exchange ' yesterday at £6, a fall of 7s 6d on the last sale a week ago, and 5s below the previous lowest price. In an interview .at Waimauku, Mr Coates said that the fall was probably due solely to the forthcoming general election, but stated that it revealed lack of confidence, not in the Government, but in the Government’s opponents. There was apparently some fear that if anpther political party was returned to power the shares now held by the public would betaken over, and there was perhaps a measure of uncertainty as to the price that might be paid. The same argument applied to shares of the Mortgage Corporation, which had also fallen slightly on the Stock Exchange. s “I hope the holders of these securities will not he tempted: to dispose of them at a price below normal,” Mr Coates said. “Both these institutions were established by the Government as an integral part of the programme for the financial rehabilitation of the country, and they provide perfectly secure avenues for investment. There is no call for uncertainty as to the future. The benefits afforded by both the Reserve Bank and the Mortgage Corporation are such that the majority of electors will not desire to see a change’ from the present system of control.”