SECOND ATTACK

Dominion, Volume 30, Issue 174, 20 April 1937, Page 9

SECOND ATTACK

“Rumour-mongering” on N.Z.’s Credit STOCKS’ SLIGHT FALL Vigorous Reply by Labour Newspaper ASSERTIONS REFUTED By Telegraph.—Press Assn. —Copyright. London, April IS. New Zealand Government stocks suffered some small declines as the result of the attack by the Beaverbrook newspaper, the "Evening Standard,’’ on Tuesday last, which the “Financial News” (Independent) describes as "unfortunate rumour-mongering,_ for which there is but little call in view of the statements made by Sir Austin Harris, chairman of the National Bank of New Zealand, in July last.” . . Mr. W. Nash, New Zealand Minister of Finance, having gone to Berlin, is unable to reply. There were further attacks by the same paper on Friday extending ovei a column. The City editor of the "Daily Herald” (Labour) devotes an equal amount of space to refuting the assertions that there is no justification for purchasing New Zealand securities at present prices, but that on the contrary they should be sold. Butter Crux of Situation. He says the Government’s measures, so far from impairing New Zealand’s credit, have improved it. There has been a sharp movement of capital to New Zealand. Butter is the crux of the situation. If farmers are assured of a good price, then the Governments 40-hour week and public works programme can be safely carried out. There are admittedly dangers in the guaranteed price scheme. If the price is placed too high it may lead to overproduction and inflationary borrowing; but the present world-price suggests that the guaranteed price is satisfactory, provided the Government resists the temptation to pay a surplus to farmers when the world-price rises. The butter market is at present in a sensitive condition with wide fluctuations, but with little general speculation. SIR A. HARRIS’S SPEECH Speaking at the meeting of the shareholders of the National Bank of New Zealand, Ltd., in London on July S last, Sir Austin Harris said: "I am in a position to-day, on the direct authority of the New Zealand Government, to reaffirm quite definitely that there is not, and never has been, any intention on its part to interfere in any way with the service and terms of the loans domiciled in England. This is in complete accordance with the high traditions of the Dominion. I hope that this statement will allay any remaining fears that anything in the nature of a forced conversion was ever contemplated by the responsible Ministers.” Mr. Nash, commenting on Monday last on the fierce attack on New Zealand’s credit by the “Evening Standard,” declared that it was ridiculous to suggest that capital was fleeing from the Dominion. On the contrary, he said, the opinion of reputable investors was sufficiently indicated by the quotations of New Zealand shares, which compared satisfactorily with those of English and Australian securities, and showed that informed men in the City appreciated the scrupulous care the New Zealand Government had taken in its recent legislation to ensure justice to investors. The balancing of the Budget afforded evidence of the soundness of the finances, and exports and imports were in the healthiest position for a decade.