NEW ZEALAND MONEY

Nelson Evening Mail, Volume LVI, 15 August 1924, Page 2

NEW ZEALAND MONEY

HOW MUCH GOES TO AUSTRALIA

STATEMENT. BY PREMIER

(From our Parliamentary Correspondent)

WELLINGTON, This Day. • The question of money going out of New Zealand for investment in Australia was referred To in the House yesterday. '4

Al r Alassey said ho had heard statements made to the effect that Australian money could be not more cheaply iti the Dominion than New Zealand money. He knew that certain local bodies had been able to borrow from Australian institutions doing business in New Zealand, but that was actually New Zealand money and it could not possibly become Australian money until'. exchange was

paid upon it. New Zealand money was going to Australia but not in particularly large sums. He bad made enquiries, but. lie could not find that any large sums had gone to the Commonwealth, except in the ordinary way of business. It was a fact that, the exchange being against, the sending of money from the Dominion, was working in bur favour. There was mr question that small sums amounting in' the aggregate to something large .were finding their way from New Zealand to Australia. He had nscer-

tained that within the last few months a quarter of a million pounds had been sent to Australia for investment and he Would like to take steps to discourage that. -

A member r “Would nbt that be a dangerous thing? 1 ’ Mr Massey :“I don’t think so. I think we are justified in defending ourselves. Mr Young had referred to the large, sums-going out of the country to

pay For sugar. He was not prepared to speak definitely, but ho hardly thought exchange was paid on that money, Mr Young said he was siitc exchange was paid, It was sometimes fqrgOtteH, s<dd the Prime Minister, that New Zealiifid Was

buying largo quantities of Wheat froiil Australia on which exchange'had-to be paid and it meant a very serious increase ill the cost of wheat we wet'e purchasing. Local bodies which Were borrowing from Australian firlaijciiil institutions had to pay all their iiltei'eSt ill Australia, so that when the term of the loan’"Came-to an end, they had to pay the exchange. He did not know what the rate of exchange would be in a year or two, but it was very heavy now, and it interfered very'seriously with the

business between this country and Australia. Whatever'might be said to the contrary, money was iriuch- dearer in Australia Thaii iff was"Tii- New Zealand. How long that would remain so. he could not saV. ’<