CREDIT OF N.Z.

Auckland Star, Volume LXVII, Issue 181, 1 August 1936, Page 10

CREDIT OF N.Z.

ON LONDON MARKET. NO FORCED CONVERSION. BANK CHAIRMAN'S COMMENT. Reference to New Zealand's credit in London was made at the annual meeting in London of the National Bank of New Zealand by the chairman, Sir Austin E. Harris. In connection with tlie latest conversion loan arranged on behalf of the New Zealand Government, Sir Austin Harris said that, although this was not fully subscribed, the result was not entirely unsatisfactory in view of the general conditions in the London market and the trend of events in New Zealand, which had aroused a not-unnatural hesitation on the part of investors.

"This sentiment has been heightened during the last few days by a statement made by the Prime Minister wliich, when first cabled, created a feeling of something approaching alarm," he continued. "We realise to-day that this statement, which created so unfortunate an impression in tlie minds of many investors in New Zealand securities, has been misinterpreted. The announcement made later by the High Commissioner was reassuring.

"It would not be unnatural, nor in my opinion could anyone take exception, if Mr. Nash, on his forthcoming visit should avail himself of tlie opportunity of discussing with his financial friends the future conversion of loans bearing high rates of interest with a view to some possible readjustment on terms which would be "fair and acceptable to all parties concerned, especially in tlie direction of earlier dates of conversion.

"For my own part, I think it is only to be expected that this subject is one which naturally would be raised by Mr. Nash while over here, in view of the efforts 011 the part of the New Zealand Government to seek any possible economies, and in the hope that some acceptable proposal might evolve from his discussions; but I am in a position to-day, on the direct authority of the New Zealand Government, to reaffirm quite definitely that there is not, and never has l*en, any intention on their to interfere in any way with the service and terms of the• loans domiciled in England. This is in complete accordance with the high traditions of the Dominion. I hope that this statement will allay any remaining fears that anything in the nature of a forced conversion was ever contemplated by tlie responsible Ministers."