ECONOMY PROPOSALS

Evening Star, Issue 21073, 9 April 1932, Page 17

ECONOMY PROPOSALS

STOCK EXCHANGE'S APPROVAL: Generally speaking, the proposals of the Government as regards interest and rent reductions and other means of raising revenue have met with the approbation of the public. This was the impression formed by a * Star ’ representative this morning when he interviewed a number of prominent citizens in connection with the proposals. REVENUE STAMP. The chairman of the Stock Exchange stated this morning that there was general approval by the stock exchanges throughout New Zealand of the Government’s and investors in Government securities were pleased with the Government’s determination not to have any reduction or default _in amounts payable on these securities.The suggestion that the revenue stamp was to be adopted also received the stock exchanges’ approval. The revenue stamp proposal was submitted to the Government some eighteen months or two years ago, when rumours of a proposed cut in interest rates were current, so that that method of raising revenue did not emanate from the Economy Commission, because it had been suggested prior to the setting up of the commission. The principal cause of the drop in Government 5J per cent, securities during the past twelve mouths had been the sellings by Australian holders. In the first place, rumours were current in Australia that the New Zealand Government proposed to make a cut similar to what had been done in Australia, but probably the principal reason was that Australian sellers obtained a high premium for. their securities. Where the New Zealand investor bought at a discount ofj about £3 per £IOO, the Australian seller; was getting something like £llO for, the same stock. The chairman expressed the opinion that when it became known in Australia that no cutwas intended those securities would probably firm on the markets throughout New Zealand. RENTS AND INTEREST. A leading land and estate _ agent,questioned regarding the provisions for rent and interest, said the proposals,; even with the additional information available, were somewhat nebulous. It was an important point that reductions already made were to' be taken! into account, and that both sides had the right to appeal to the Supreme Court or the Magistrate’s, Court, as the case might be, if any particular circumstances warranted special investigation. WON’T COVER WEEKLY TENANCIES. [Per United Press Association.] WELLINGTON, April 9. It is clear that the rent reductions proposal in the National Expenditure ; Adjustment Bill does not cover weekly' house tenancies. When the _ question l was raised to-day with the Minister of t Finance he said: “I understand the) legislation applies to all classes ofj tenancy, but, of course, with regard to weekly tenancies, it could hardly ba effective without some further restrio-j tive legislation, as obviously a lardlord could terminate a tenancy by notice and raise the rent, whereas, id the case of longer leases, he is not in a position to do this.”