REPLY TO CRITIC

Dominion, Volume 27, Issue 58, 1 December 1933, Page 12

REPLY TO CRITIC

Finances of Dominion BUDGET ESTIMATES “Unwarranted Statement CREDIT OF NEW ZEALAND Remarks made by tlie Minister of Finance Rt. Hon. J* 1"* Coates, in the House of Representatives on Wednesday night concerning the criticism of New Zealand public tm■inces by Hie chairman of the Bank of New South Wales, Mr. Thomas Buckland, at tiie annual meeting of the bank in Sydney, were supplemented by Mr. Coates in an interview last evening. Mr. Coates said that Hie criticism showed an incomplete knowledge of New Zealand affairs and this accounted for some erroneous inferences in it. Concerning the gold coin to be taken over by the Reserve Bank, Mr. Coates slid every aspect of tlie matter had already meen thoroughly discussed, and there was no occasion to go over the ground again. As to the allegation that the credit of the Dominion in London must suffer, he could say on y that the decision reached was definitely endorsed by authoritative and disinterested opinion in London. . __ , “A 4l to the public finances,' Mr. Coates continued, “I may say that, the suggestion that they have been drifting tor some years past and are out of contiol i« unfounded and unjustified. Ibe floatin- debt is the best indication of the position, and as far as this Dominion is concerned Treasury bills outstanding in the hands of the banks and the public at March 31 last amounted to £2,380.000 only, and these bills were fully covered by liquid assets held in London. The Year’s Deficit. “Reference to the Budget will show that tlie estimated deficit for this financial year is approximately £2,000,000 and not £4,500,000, as stated by Mr. Buckland Furthermore, the additional statement that the present position indicates a deficit of £9,000,000 is absolutely unwarranted and clearly shows that the sneaker has very little knowledge of conditions in New Zealand.. Everything points to the Budget .estimates being realised, . . “The remarks concerning the payment of interest on London debt by local authorities are unwarranted, lhe Government went out of its way to clear un the difficulties that arose, and the London Stock Exchange is now quite satisfied with the position. Stocks Compared. “Generally a good deal was said about the daniagp to New Zealand credit in London,” said Mr. Coates. I dislike making comparisons, but. since Australia is quoted by way of example, I would merely like to say that the latesj quotations for 'some comparable stocks on. the London market, excluding accrued interest arc:—New Zealand 5 per cent., 1946 £lO9/5/-: Commonwealth 5 per cent.’. 1945/75, £lOB/8/9. “Recent conversions on the London market provide another illustration. On September 13 a Commonwealth conversion into 33 per cent, stock was issued at 98 while on October 3 the New Zealand loan, which in effect was practically a now issue, was heavily oversubscribed at 3} per cent. at. 97. Incidentally these terms were more favourable than for any previous issue during the last thirty years.”