N.Z. CREDIT

Hokitika Guardian, 1 December 1933, Page 3

N.Z. CREDIT

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GOVERNMENT STOCK WANTED.

INQUIRY / FROM AUSTRALIA

(Per press .Association, Copyright)

i b-'WELLINGTON,- November 29

To-d-'y the New Zealand Government' received a cable message from Australia, making inquiries for.' an investment of £300,000 ; in' Government stock' at. 3i per cent. Effective use of thi s .fact was made by the Minister for Finance;- the Rt. Hon. J. G. Coates, when be replied ''in the House to-night to Mr H. S. S. Kyle (C.., Riccaikon), who wanted to know how Ne'wfZealand’s credit stpod abroad.

Mr : Kyle referred to the statement published from 'Mr Thorna lS Buckland, Resident; of tRe liahk/ipf . New South "Wales, severely criticising the contemplated action of the New Zealand Government, with reference to the gold reserves of the banks. Mr Buckland had

r said!"that this action wag "going to damage seriously the credit of New Zetflaifd in’the Old Country. Mr Coates said it was true that Mr Buckland. had _made some caustic comments, but members could console themselves with the knowledge that hi 6 speech was based on en'tirely' incorrect, information. Perhaps the best answer to the suggestion that -New Zealand's credit was sinking to a low level was that New Zealand’s last loan had been raised at a considerably lower rate than the Commonwealth loan,' namely 31 per cent, at £>97. Another loan had been raised by a Dominion local body on. the same terms. 'that the;- cried it of local bodie b was appreciating on the London markt. Another answer to the president of the Bank of New S°uth Wales had come > -that day in the ■form of a cable frdm Australia,, making inquiries for an- • investment of £300.000 in Government stock, not, at the ruling rate of 33 per cent, but at 3} per cent. That was a further reply to these constant croakings, and it came from the verv country 'that had hern the latest to cry out about New Zealand. ‘ “I am glad the' honourable gentleman raised the point,” said Mr Coates. “The position is very different -from what some people would have us believe.”