N.Z. FINANCES.

Auckland Star, Volume LXIV, Issue 283, 30 November 1933, Page 17

N.Z. FINANCES.

ANSWER TO CRITIC. £300,000 INVESTMENT OFFERED, STATEMENT BY MR. COATES. (By Telegraph.— Parliamentary Reporter.) '" WELLINGTON", this day. Practical evidence of tlie status of New Zealand credit reached Mr. Coates yesterday in an inquiry from Australia for an investment of £300,000 in the Dominion in Government stock at 3£ per cent. "This is another answer to those who are constantly croaking about this 'terrible country, 1 " said Coates m the House last night. Mr; J. A. (Labour, Grey Lynn): I suppose you accepted the offer, m order to provide a Christmas box for felief Workers. ■i Ttf r Coates: That matter can be safely Jfeft to Mr. Hamilton. IOTr- J. O'Brien. {Labour, Westland) : Sou have cut the allocations by 50-per $enfc already. . , N.S.W. Bank Chairman's Criticism. '■?. "How is the credit of New Zealand jsianding in' London?" was the unexpected question put to tlje Minister by •Mp. H. S. S. Kyle (Coalition Reform, Riccartoh), who explained that his question was prompted by the criticism of •tlie chairman of the Bank of New South '"Wales of the New Zealand Government s action in what was characterised as the practical "confiscation" of the trading banks' gold. . Mr. H. T. Armstrong (Labour, Gnristchurch East): Lucky lie does not pinch tlie banks. (Laughter.) " "I am rather pleased the question has . been asked," remarked Mr. Coates. "I lave read the remarks of the chairman of the Bank of New South Wales m Australia, but we can console ourselves that his speech was based on entirelyincorrect information. The best answer to the suggestion that New Zealand credit is low is that a New Zealand loan "was raised in London at 3J per cent, at £97, which was a little less than the Commonwealth loan raised a little while before. "Credit Sound in London." "I can also quote another loan raised bv a New Zealand local authority, denmtely indicating that the- credit of our local authorities is sound, and appreciated in the world's market. It must he a little bit disappointing to those who criticised the Government, and especially New Zealand's attitude in paying interest in sterling, and, so fair as lies in our power, ensuring that local bodies also pay in sterling. Another answer to the chairman of the Bank of New South Wales is that a cable arrived to-day making inquiries for an investment of £300,000 of Australian money in. our Government stock at 3J per .cent."