BANKS' INDEMNITY.
OPINION IN LONDON. PROBLEM FOR GOVERNMENT. BUDGET DIFFICULTIES. LONDON", February 4. Commenting on the passage of the New' Zealand Bank Indemnity Bill, the "Financial News" says the banks in London report quite considerable speculative demands for New Zealand funds. They will now be able to foist any surplus sterling purchases on the New Zealand Government, presumably at a rate_ which will afford the authorities a slight advantage over buyers. The maintenance of the new rate/ therefore, will depend on the extent to which the trade surplus widens in New Zealand's favour and secondly on the power of the authorities to absorb the resultant accumulation of sterling. The paper says it is likely that the financing of the sterling surplus ultimately will prove quite a formidable problem for the Government. The difficulty, however, may prove insignificant beside the inevitable budgetary difficulties.
What the New Zealand Government has done 'by this sectional legislation is to assume a heavy new burden in return, for a doubtful gain by the farmers.
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Bibliographic details
Auckland Star, Volume LXIV, Issue 30, 6 February 1933, Page 5
Word Count
169BANKS' INDEMNITY. Auckland Star, Volume LXIV, Issue 30, 6 February 1933, Page 5
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