NEW ZEALAND MONEY

Dominion, Volume 29, Issue 258, 28 July 1936, Page 9

NEW ZEALAND MONEY

Comment on Increased Flow

to Australia NERVOUSNESS SAID TO BE REASON Bv Telegraph—Press Assn.—Copyright. Sydney, July 27. The Sydney ‘‘Daily Telegraph” says that the flow of New Zealand money for Investment in Australian securities, which increased greatly in the last six weeks, has been largely responsible for the big advances in the leading industrial stocks. The influx can be traced to nervousness in New Zealand due to the accession of the Savage Government and to legislation enacted by that body.

New taxation proposals directed against large incomes may even accentuate the present uneasiness. When Mr. Savage first became Prime Minister, says the ‘‘Daily Telegraph,” money was attracted to the Dominion by his assertion that he would restore the New Zealand pound to parity with sterling by stages. When this was found to be impracticable, however, the funds so attracted were quickly repatriated. Normally there is .in intermittent inquiry on New Zealand account for Australian banks, Colonial Sugar and certain other stocks with New Zealand affiliates, but this has now developed into an every-day demand. With the limited field available for investments of the typo sought on New Zealand account, prices for the highest class of industrials, and even for fixed interest-bearing Australian securities, have risen. The downward trend in the prices of Australian consolidated stocks has been checked, and such stocks as Australian Glass and the Broken Hill Proprietary have advanced to the highest levels on record. On the other hand, Bank of New Zealand ordinary shares, on which 10 per cent, dividend has been consistently paid, have fallen from 49/- to 41/-, purely because of New Zealand selling. Fixed deposits throughout the Commonvfilth have increased _by £3.154109 in the last quarter, but it is understood that only a relatively small proportion of this increase represents New Zealand money.