THE FLOW OF CAPITAL

Greymouth Evening Star, 23 May 1906, Page 1

THE FLOW OF CAPITAL

[by telegraph—special to the star.; WELLINGTON, This Day. In regard to the investment of Australian capital in England, authorities here think that New Zealand will not bo affected. Enquiries made by the Evening Post tend to show that even if the report about Australia was accurate, the controllers of capital here had not heard of any tendency among New Zealand investors to copy the neighboring continent's example. They seemed to find the colony a satisfactory field for the outlay of funds. The authorities were inclined to discount the value of the statements concerning the withdrawal of money from Australia. They contended that foreign investment on the scale mentioned would have made money dearer in New Zealand, but no tightening effect had been experienced here. Another export ventured an opinion that money owned in England might have been taken back to that country, owing to the lower rates of interest in Australia in comparison with those of past years. British investors liked to have their money placed nearer home, unless they could secure a big margin of interest in a distant land. He held that the withdrawal would not be appreciably felt in New Zealand, because the gap that might be created in the colony's reserves by large exports from Australia was filled by the Government borrowing. Oilier financiers remarked that they did not think there was much in the statement about Australia. In any ease they maintained that there was not much English money invested in manufacturing interests in New Zealand and any that was placed in that way was being gradually absorbed locally. It was mentioned that the only occasion on which English money had been withdrawn from New Zealand had been during the bad times, over a dozen years ago. Australian transactions with England had not affected New Zealand, and if money had been taken away nothing had been said about (lie cash which had been sent in. Only one side of the ledger had been ouoted.