No Need to Fear

Manawatu Times, Volume 63, Issue 249, 20 October 1938, Page 6

No Need to Fear

New Zealand Will Honour Financial Obligations MR. SAVAGE ASSURES BRITISH INVESTORS Per Press Association. WELLINGTON, Last Night, i An assurance that the New Zealand i Government would honour its financial l obligations to the full was given by the Prime Minister (Rt. Hon. M. J. Savage) when referring in an interview this evening to a cable message from London indicating that steps were being taken in Great Britain to allay anxiety in financial quarters following the return of the Labour Government for a further term of office. British investors, said Mr. Savage, need have no fear for tho safety of their investments in the Dominion. “I endorse every word that Mr. Jordan has said,” said Mr. Savage in amplification of the High Commissioner’s statement. “Our obligations to Britain will be met to the full. As Mr. Jordan has stated, we have never defaulted. British investors need have no anxiety concerning their investments in New Zealand, Wo have met our obligations in the past and we will meet them in the future. Investors at Homo need have no fear.** HIGH COMMISSIONER’S EARLIER ASSURANCE LONDON, Oct. 18. New Zealand House Is taking precautions to allay anxiety in financial and other quarters as the result of un-j favourable comments on Mr Savage'? return. The New Zealand High Commissioner, Mr W. J. Jordan, told the Australian Associated Press: “I informed those concerned that they can rely or the Prime Minister’s not doing anything detrimental to any interests vital to New Zealand. I reminded them thai New Zealand had never defaulted, and pointed out the difference between th« Government’s policy and what the Op. position would have the public believe.” Mr Jordan admitted that some financial quarters feared that Mr Savage would now embark on drastic socialisation, but he was very satisfied with the latest reactions. The newspaper Financial News sayi that Labour’s return in New Zealam disappointed the bond market. Then is not much selling, but stock has bee. picked up quietly by buyers hoping fo? the swing of the pendulum. As an out come, dealers, as a precautionary mea& ure, have lowered their prices. The falls in leading issues, compared with prices on October 14, are: 3} p e? cent, stock, 1940, 5/-; 5 per cent., 1945 10/-; 4$ per cent., 1945-58, 10/-; 3 pel cents., 1945, £1; 3 per cents., 1952-55 15/.