DEVELOPMENT LOAN

Press, Volume LXXXIX, Issue 27169, 13 October 1953, Page 10

DEVELOPMENT LOAN

EXCHANGE CHAIRMAN COMMENDS ISSUE “OBVIOUS THAT MONEY IS AVAILABLE” (New Zealand Press Association) AUCKLAND, October 12. “A fully-subscribed national development loan is the concern of every member of the community, in that capital is required to undertake essential works that in return give employment i to many thousands of New Zealanders,” said the chairman of the Auckland I Stock Exchange (Mr D. A. Schnauer) | today, in commending the %Government’s £10,000,000 loan issue, which is to close on Thursday. “With a strengthening economy such as there is at present it is obvious that money, though a little hesitant in coming to hand, is nonetheless available,” he said.

“We have read of a contemplated alternative by way of credit creation through the Reserve Bank, but such a move would result only in the undoing of all past efforts to build value into the New Zealand pound. It is as well to remember that every form of inflation must ultimately be paid for, and only means putting off the evil day of reckoning.”

Mr Schnauer said that a continuation of existing economic conditions was to a large degree dependent on this loan, as a short subscription would result only in a further upheaval of interest rates and the weakening of Ne w Zealand prestige overseas. “The terms and conditions of the issue are fully in line with ruling market rates, and warrant the support of those with capital available for investment,” he said.