THE PROBLEM OF CREDIT

Press, Volume LXX, Issue 21120, 22 March 1934, Page 10

THE PROBLEM OF CREDIT

♦ NECESSITY FOR HIGH STANDARDS ADDHEMS HY HON. W. 1)0 W.N IE STEWART (THE TEESS Special Service] AUCKLAND. March 21. "Credit is a most sensitive plant that shrinks and withers at the least indication of the relaxation o£ high standards.'' said the Hon. \\ . Downie Stewart, M.P.. tor Dunedin West, and a termor Minister for Finance, in a brief address at th° Auckland Creditmen's Club luncheon. Mr Downie Stewart said that so much of his time had been occupied lately with profound dissertations on social, costless, and Douglas banking. and every other lonn oL credit that he found some diiuculty in turning his mind to the activities ot the Auckland Credilnicn s Club. (Laughter.) The problem of credit was of vital importance in all walks of Jii'e. every grade of society, and in a vastly widening circle. Auckland itself had recently provided an example, lie had no desire to raise political issues, hut he understood that owing to doubts as to the intentions of certain local bodies. no Auckland stocks could be quoted on the London stock exchange. That meant that credit was in suspense in London, and only wont to emphasise what a delicate plant credit was. Similar principles applied in the wider sphere of State credit, and in international credit relationships as well. It was ol'ton asked why New Zealand should worry about London financiers, and bo under any domination from Great Britain, but. tin! view would be tenable only if the Dominion did no trade with the United Kingdom, and did not roue linnn.ee in London. "We cannot tain money of London financiers. and

then ienore t!m rules they lay clown," he added. The same idea n[ credit standards d< iinmated the international sphere. If nations said they were pleased to disarm, and then won 1 oil n'mim'.. then their word we-- f.. -* effdite.-!. There was an old And" Saxon swine. as true tn-dav a< over it v a-., that man should in- indeed not by what ho said but by wit d he did.