INVESTMENT MARKET

Evening Post, Volume CXXVI, Issue 150, 22 December 1938, Page 12

INVESTMENT MARKET

BUSINESS DECLINES

NEW ZEALAND CRITICISED

GOVERNMENT'S FINANCIAL M£fHODS

(By Telegraph—Pre»?s» Association —Copyrieni.j SYDNEY, December 21.

Eeviewing conditions on the Sydney Stock Exchange, which closes for the Christmas vacation tomorrow, a leading member of J&ie Stock Exchange said today that tjvere had been a marked falling <Sfit! of business this year due mainly to the drop of £14,000,000 to £16,000,000 in the wool cheque and, to a lasser degree, to the unsettled internatioiy..al position, which had caused many an:?cious moments. On the other nand'» there had been no real selling presautre, but merely a desire to mark time aaad await developments both at home and abroad. This state <^ affairs was likely to prevail into the New Year. Reference was then. made to the position in New Ze^3and, and, in consequence of the I Dominion Government's financial measures, the member doubted whetl^sjr New Zealand investors would be a\ile to buy on Sydney for some time. There had been some buying ami! some selling, and, but for the emergency measures, the buying would probably have exceeded the selling by New Zealand. He added that if Mr. Savage and Mr. Nash read the. reports ctf their Treasurer they would find th&it the Australian market took up a amount of New Zealand loans, bi^t"* under the present conditions in N(asv Zealand, no Australian* would thill's of it.

Experienced financial mem in Sydney look upon New Zeaaaiad's action as unwise. It would havei been far better to have free actions between New Zealand and Australia, trusting to Australia, at some future time, being again willing to take up» New Zealand loans.