DOMINION’S CREDIT

Evening Star, Issue 21582, 30 November 1933, Page 1

DOMINION’S CREDIT

LOANS AND APPLICATIONS REFUTE BANK DIRECTOR'S SLUR STATEMENT BY FINANCE MINISTER [From Our Parliamentary Reporter.] WELLINGTON, November 29. “ How is the credit of New Zealand standing in London,” was the unexpected question nut to the Finance Minister by Mr Kyle during the committee discussion on the Local Bodies Loan Conversion Bill. He explained that the question was prompted by the criticism of the chairman of the Bank of New South Wales of the New Zealand Government’s action in what was characterised as practical confiscation of the trading banks’ gold. Mr Armstrong: Lucky he does not pinch the banks. (Laughter). The Chairman of Committees suggested that the question was not relevant to the measure under discussion, but Mr Kyle replied that local bodies were very much concerned if the country’s credit was likely to be damaged. “ I am rather pleased that the question has been asked,” remarked Mr Coates. " I have read the remarks of of the chairman of the Bank of New South Wales, in Australia, but we can console ourselves that his speech was based on entirely incorrect information. The best answer to the suggestion that New Zealand’s qredit is low ? is that the New Zealand loan was raised in London at 3| per cent, at £97, which was little less than the Commonwealth loan was raised at a little while before. I can also quote another loan raised by a New Zealand local authority definitely indicating _ that the credit of our" local authorities is sound and appreciated in the world’s market. It must be a little bit disappointing to those who criticised the Government, and especially New Zealand’s attitude of paying interest in sterling, and, so far as lies in our power, ensuring that local bodies also pay in sterling. “ Another answer to the chairman of the Bank of New South Wales is that a cable arrived to-day making inquiries for the investment of £300,000 of Australian money in our Government stock at 3J per cent.” The Minister also mentioned that, in addition to the seven millions involved in previously announced conversions, another three and a-half million of conversions of local body loans had been approved during the day, making n total of ton and a-half millions authorised.