NEW ZEALAND CREDO,

Evening Post, Volume CXXV, Issue 143, 20 June 1938, Page 7

NEW ZEALAND CREDO,

LONDON COMMENCE i X MR. SAVAGE'S REASSURAiICE (From "The Post's" Representative^ LONDON, May'2s. On receipt of the cable messa.'ge rtb ceived two days ago from Mr. Syage, that New Zealand is doing more tirade with this country than she has f ever done and that "whatever contracts we make we will keep," the "Financial Times" comments: "The statement made by Mr. Sdvage, the New Zealand Prime Minister, to the effect that New Zealand is . in a better position today than had been thought possible will go some wepr towards reassuring the holders of New Zealand stocks who had become a (little fidgety at the declines which hawef recently taken place in the market. .The credit of New Zealand used to $and well above that of her Australian neighbours. Upon the New Zeafend Government becoming to a market#'degree a Labour Administration, investment became less confident. .. . There is no reason to doubt the sincerity of Mr. Savage. His statement should be sufficient to still what he. refers- to as 'the whispering campaign against the New Zealand Government.' The financial editor of the "Eventing Standard" writes: "A year ago Mr. ;Sfevage attacked me for pointing out tfaat the financial policies of the New Ztealand Government would lead to a tall in the bonds. There ,is no question of a whispering campaign. The fttcts are clear. New Zealand is set on a programme of expenditure which she will not be able to meet if the prices l of her export products fall. "Mr. Savage, however, says today that New Zealand is as intent on paying her way as ever she has been and that 'whatever contracts we make w e will keep.' These are good words. But, however well-intentioned our New Zealand friends may be they will not be able to fulfil their bargains if private trading is hampered and "ics? who produce are cvert'u\l?n:d.''