INVESTORS' FEARS

New Zealand Herald, Volume LXXV, Issue 23226, 21 December 1938, Page 16

INVESTORS' FEARS

CONFIDENCE SHAKEN INTERFERENCE BY STATE OVERSEAS CHANNELS SOUGHT [bx telegraph—OWN correspondent] DUNEDIN. Tuesday For stockbrokers and tho investing public the past 12 months had been one of tho most trying and disappointing periods experienced for a long time, stated INIr. Harmon Reeves, chairman of the Dunedin Stock Exchange, at the annual meeting to-day. Tho underlying cause was to be found, not only in tho uncertainty of tho future and the socialistic tendency of the Government, but also in political and economic developments in other parts of the workl. "During tho last three years," Mr. Reeves said, "many millions of capital have left Now Zealand for investment in Australia, Loudon and elsewhere. It is only fair to state, however, that no matter what Government is in office large sums of money are annually sent overseas for investment, and particularly to Australia. The reason is to be found in the fact that there is only a limited field for investment in New Zealand, whereas in tlio Commonwealth there is a wide and active market which offers very attractive investment. "It must be admitted, however, that legislation placed on tho Statute Book by the present Government has greatly accentuated the desire to send money out of tho Dominion for investment purposes," said Mr. _ Keevps. "Money is practically unobtainable at present for any new local enterprise owing to the fear of fresh legislation that may be introduced. 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 fear of further State interference. Confidence has been badly shaken and the threat of State interference permeates every class of business enterprise. "The existing financial and economic structure has taken hundreds of years to establish, and it is not to be supposed that this can be altered overnight by legislation without causing considerable alarm," Mr. Reeves added. "In conclusion I regret to say that the outlook for the coming year, with so many restrictions surrounding our operations, is not as good as wo could hop© for."