SACRED FIELD OF FINANCE

Evening Star, Issue 22382, 4 July 1936, Page 14

SACRED FIELD OF FINANCE

MR SAVAGE ANSWERS LONDON CRITIC “SUCH A STUPID STATEMENT” [Special to the ‘ Star.’] WELLINGTON, July 4. The declaration tliat tlie Government had no intention of attempting to take undue advantage of any section of the British people was made by the Pri: o Minister when _ making further reference to the criticism directed at his announcement regarding New Zealand’s indebtedness overseas. “ The editor of the ‘ Financial Times,’ said Mr Savage, “ refers to what he terms my well-intentioned but dangerous ignorance, and says that when I realise that the money yield governs prices the bother I have created will die down. “ The person who is capable of making such a stupid statement is not entitled to reflect on my _ intelligence. The Leader of the Opposition, too, is horrified at the idea that any attempt should he made to improve our position with our creditors overseas. “ I wonder if this is the same Mr Forbes whose Government, by Act of Parliament, and without, consulting those concerned, reduced rates interest, thus breaking contracts enterecd into in New Zealand ; lifted the exchange rate from 110 to 125, thus creating an artificial barrier against the very people for whom his heart bleeds to-day; and knocked the bottom out of the agreements entered into at Ottawa and elsewhere. “ Is it the same Mr Forbes who, on his return from Britain in 1932, commenced a policy of wage reductions and general deflation, who wrecked the fortunes of thousands of New Zealand people, and made it for them to met their commitments on homes, farms, and other investments? “ What a strung state of affairs. We may destroy securities in New Zealand; we may send men to Britain to bargain with the shipowners about freights; we may keep an expensive staff in London for the purpose of selling to the British people on the most advantageous terms; we may bargain about anything but money. The field of finance is sacred, only to be trodden by .the favoured few, “It is not the intention of the Government to attempt to take undue advantage of any section of the British people. That is surely borne out by our intention to send the Minister of Finance to Britain for the purpose of increasing our trading and other relationships with the Mother Country.” NEW ZEALAND STOCKS STEADIER MR NASH'S STATEMENT WELCOMED Press Association—By Telegraph—Copyright LONDON, July 3. (Received July 4, at 2 a.m.) New Zealand stocks are steadier, hut according to, the City, editor of ‘The Times ’ the disturbing effects of Mr Savage’s statement have not yet disappeared. Accordingly the City welcomed Mr Nash’s statement, through Sir James Parr, denying that default or depudiation is contemplated and explaining that Mr Savage expressed the idea that while he and Mr Nash were in London the opportunity would be taken to ascertain by discussion what could be accomplished- by conversation and consolidation of the public debt. The statement also explains New Zealand’s sound financial position. ‘ The Times ’ adds: “ The statement should go a long way to restore the confidence of a great number of investors who have always shown a desire to invest in New Zealand stocks,’ which the Dominion must maintain in order to convert on. most favourable terms. Such operations, however, must be governed by the terms of the various issues. It is possible that Mr Nash will find some considerations surrounding the question of modifying existing contracts not yet fully realised.” The ‘ Daily Telegraph’s City editor hopes that the. unfortunate and untimely incident will soon be closed, as a call is due on July 31 on the New Zealhnd loan advantageously floated on April 30. It is hoped that the affair will now be relegated-to the wellpopulated limbo of political indiscretions.

The ‘ Daily MMI ’ hopes that nothing further will be done to impair New Zealand’s credit.