"GONE SAVAGE"

Evening Post, Volume CXX, Issue 132, 30 November 1935, Page 10

"GONE SAVAGE"

NO REAL.CAUSE TO FEAR

LONDON FINANCIAL VIEWS

(Received November 30, 9 a.m.) LONDON, November 29. The "Financial Times" says that though New Zealand has gone Savage the investor has no real cause at the moment to fear the new regime. In 1923, when Britain had its first Labour Government, gilt-edged securities fell for fear of what might happen, but quickly recovered. New Zealand Bonds similarly fell yesterday, but they will probably recover, especially as there is nothing really revolutionary in Mr. Savage's immediate programme. There is ; indeed, no sign that Mr. Savage is a Lang in sheep's clothing, and no apparent danger of his wrecking New Zealand's economic structure. The "Financial Times" says that holders of New Zealand Stocks have no need to be timorous about the result of the election. The fall in prices due to the Labour Party's success is mainly sentimental. Holders of sound New Zealand securities should not sell. WEAKENING IN SECURITIES. The City Editor of "The Times," I commenting on the weakness of New i Zealand Government and municipal securities, ranging from H to 4J points, says that New Zealand, oven in its most difficult moments, has enjoyed a high reputation. Hence the Labour victory was a shock to investors, causing a fair amount of selling, chiefly in small amounts. Holders of New Zealand securities, however, will be reassured by Mr. Savage's statement. At present it is impossible, owing to the vagueness of the Labour proposals, to say whether they are dangerous, but they appear to involve inflation of the currency. Nevertheless, the shipping industry should welcome the return of Labour, owing to its promise to act against foreign subsidised shipping. ,