CAPITAL UNOBTAINABLE

Nelson Evening Mail, Volume LXXII, 21 December 1938, Page 7

CAPITAL UNOBTAINABLE

FOR LOCAL INDUSTRIES FEAR OF STATE INTERFERENCE STATEMENT BY STOCK EXCHANGE CHAIRMAN rUnitert Press Association! DUNEDIN, This Day. Speaking at the annual meeting of the Dunedin Stock Exchange the chairman, Mr Harman Reeves, stated that money was practically unobtainable at present for new local enterprise owing to the fear of what fresh legislation may be introduced, and so far as manufacturing is concerned it is almost hopeless to try to obtain capital for new industries or for the extension of existing industries owing to the fear of further State interference. Confidence had been badly shaken and the threat of State interference permeates every class of business enterprise.

Speaking on insulation Mr Reeves said: “We have now reached the stage where the Labour Government’s insulation plan has been introduced by which the export of capital from the Dominion, except under certain conditions, is prohibited. This is a very drastic action for any Government to take. It is expected to be adopted only when the Empire is at war or in the case of great emergency, not when our primary products are fetching fair market prices overseas and the spending power of the people is said to be greater than ever in history. The action now taken reflects the serious state into which the finances of the Dominion have drifted, and one wonders whether all is well with the ship of state. We can only hope as loyal citizens that the efforts of the Government will be effective.”