THE FLOW OF CAPITAL.

Press, Volume LXII, Issue 12482, 19 April 1906, Page 8

THE FLOW OF CAPITAL.

\_r_CIAI. TO "T1T1! PRIBS. W ) WELLINGTON, April 18. In regard to the investment of Australian capital in England, authorities here think that New Zealand will mot be affected. Enquiries made by tho "Evening Post" tend to show that even if the report about Australia was accurate, tho controllers of capital here had not fcca-rd of any tendency among New Zealand investors to copy the neighbouring continent's example. They seemed to find the colony a satisfactory field for the outlay of funds.

Two authorities wore inclined to discount the value of tho statements concerniing tho -withdrawal of money from Australia, they contended that foreign investment on the scale mentioned would havo made money dearer in NewZealand, but no tightening effect had been experienced, here.

Another expert ventured an opinion that money owned in England might have been taken back to that country, owing to the lower rates of interest in Australia in. comparison with those of past years. British investors liked to hay© their money placed nearer homo unless they could eecure a big margin of interest in a distant land. He held that tbe withdrawal would not be appreciably felt in New Zealand, because the ijap that might be created in tho colony's reserves by large exports from Australia was filled by tho Government borrowin_.

Otlier financiers remarked that they _i-d not, think that there was much in the statement about Australia. In any case, they maintained that there was not much English money invested in manufacturing interests in New Zealand, and any that was placed in that way was being gradually absorbed locally.- It was mentioned that tho only occa ion on which English money had been withdrawn from New Zealand had been during tho bad times, over a do_?-n yearns ago. Australian transaction* with England had not affected New Zealand, and if money had been taken away nothing had been said about tbe c%sh which had been sent in. Only one sido of tho ledger had been quoted.