CAN OUR MONEY MIGRATE?

Auckland Star, Volume LXVII, Issue 181, 1 August 1936, Page 8

CAN OUR MONEY MIGRATE?

The headlines in the "Star" of Monday, July 27, "New Zealand Money Goes to Australia,'-' reflect the popular fallacy that our money actually leaves New Zealand to be spent" in other countries. The fact of the matter is that New Zealand money, while it is in a form of the greatest use to New Zealanders, cannot be spent abroad; and when New Zealanders purchase foreign goods or securities their money, mostly figures in hank ledgers, is not carried out of New Zealand, but is taken over by New Zealand banks which have foreign funds for sale. The New Zealand money is still available for spending in New Zealand. We should not be alarmed, therefore, if New Zealanders are investing in Australia or any other country, for the ultimate result is to increase international trade, as dividends from foreign countries can be paid to New Zealanders only through the interchange, not of money, but of goods and services. Thousands of millions of British money, according to the popular belief, have left Britain for foreign investment, when the 'facts are that British goods only have been exported to foreign countries, to be paid for Iby foreign goods and services. The more foreign investments New Zealanders purchase, the more trade' between New Zealand and foreign countries must .be maintained, for payment of dividends can be made only through the channels of trade. The New Zealand investor, if he remains in New Zealand, must acquire New Zealand money to enjoy the fruits of his foreign investment unless lie becomes an importer o.; fovf ign goods for which, on sale, he receh es New Zealand money. It is indeed a good business proposition for New Zealanders and New Z.'e.laiV. within limits to acquire foreign investments, as they enable us to bring real wealth to New Zealand to he sold for New Zealand money. The limits are our necessity and liking for foreign goods and services. " ' BARRISTER.