DOMINION CREDIT

Bay of Plenty Times, Volume LXV, Issue 12305, 20 April 1937, Page 3

DOMINION CREDIT

FURTHER ATTACKS STOCKS SUFFER SMALL DECLINES LABOUR PAPER’S SUPPORT Loudon, April IS. New Zealand stocks suffered small declines at the result of the attack by the “Evening Standard” on the Dominion’s finances, which the “Financial News” describes as “unfortunate rumour-mongering for which there is little call in view of the statements of Sir Austin Harris, Chairman of the National Bank of New Zealand, last July.” Mr Walter Nash has gone to Berlin, and is unable to reply to further attacks from the same paper on Friday, extending over a column. The “Daily Herald” City editor de-

votes an equal amount of space to refuting assertions that there is no justification for purchasing New Zealand securities at the present prices, but, on the contrary, they should be sold. The “Herald” says the New Zealand Government’s measures, so far from impairing New Zealand’s credit, have improved it. There has been a sharp movement of capital to New Zealand. Butter is the crux of the situation, the paper continues, adding that if farmers are assured of a good price the Government’s 40-hour week and public works programme can* safely be carried out. Admittedly, it states, there are dangers in the guaranteed price scheme, and if placed too high may lead to over-production and inflationary borrowing, but the present world price suggests that the guaranteed price is satisfactory, provided the Government resists the temptation to pay the surplus to farmers when the world price exceeds the guaranteed price. The butter market at present is sensitive. Fluctuations are wide but there is little general speculation. The apple market is strong and a marked preference is shown for coloured varieties.