DOMINION STOCKS

Manawatu Standard, Volume LVI, Issue 183, 6 July 1936, Page 2

DOMINION STOCKS

A STEADIER TONE. LONDON OBSERVATIONS. (United Press Association—By Electric Telegraph.—Copyright.) Received July 4, 1.50 p.m. LONDON, July 3. New Zealand stocks are steadier but. according to the city editor of the Times, the disturbing effects of Mr M. J. Savage’s statement have not yet disappeared. Accordingly, the city welcomed Hon. W. Nash’s statement through Sir James Parr denying that default or repudiation is contemplated, and explaining that Mr Savage had 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 the conversion 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 the 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 the 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 of the considerations surrounding the question of modifying the existing cont acts have not yet been fully lealised.”

The Daily Telegraph’s city editor hopes that the unfortunate and untimely incident will soon be closed as the call is due on July 31 on the New Zealand loan advantageously floated on April 30. “It is hoped the affair will now he relegated to the wellpopulated limbo of political indiscretions.”

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

PREMIER'S REJOINDER

REPLY TO AIR FORBES.

INTEREST AND EXCHANGE. (By Telegraph.—Special to Standard.) WELLINGTON. July 4. A declaration tiiat the Oovernment had no intention of attempting to take undue advantage of any section of the British peopie was made l>y the Prime Mutineer when making further reference to the criticism directed at Ins announcement regarding New Zealand’s indebtedness overseas. “The editor of the I* financial Times,” su d Mr Savage, “refers to what he terms my ‘well-intentioned but dangerous ignorance.’ He says that when l realise that the money yield governs prices the bother I have created will d.e down. A person who is capable of making such a stupid statement is not entitled to reflect on my intelligence. “T lie Leader of the Opposition, too, is horrified at the idea of a.ny attempt being made to improve our position with our creditors overseas, i wonder if this is the same Forbes whose Government, by Act of Parliament. without consulting these concerned, reduced rates of interest, thus breaking contracts entered into in New Zealand. He lifted the exchange rate from £llO 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 Forbes who, on his return from Britain in 1932, commenced the policy of wage reductions and general deflation which wrecked the fortunes of thousands of New Zealand people, and made it impossible for them to meet their commitments on their homes, farms, and. other investments? What a strange state of affairs. AVe 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 and the. field of finance, is sacred, onlv to be -trodden by the favoured few. “It is not the intention of the New Zealand 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.” Mr Savage added.