OUR CREDIT IN LONDON

New Zealand Times, Volume XXXVII, Issue 8367, 1 March 1913, Page 4

OUR CREDIT IN LONDON

The other day we referred to a statement made at Rotorua by the Hon. W. F. Massey to the effect that -since the present Government had, come into power the credit of New Zealand had “gone-up enormously” in the City of London. This assertion was put forward as the opinion of a friend of the Prime Minister’s. The name of the friend was not divulged, but Mr Massey declared that ho is “a gentleman whose name is esteemed in New Zealand and in London financial circles.” We stated that we had been unable to discover evidence supporting the roseate state of affairs described. On the contrary, the latest cabled advices showed that our 4 per cents, were £5 10s and our 34 - and 3 per cents, each £7 10s lower on February 21st than they were on the corresponding date of the year 1912. The Christchurch “Press” professes to interpret our comment as “decrying the Massey Ministry.” We submit that this is not fair. We are searching for indications that will support the Prime Minister in his claim to have improved the already good naine of the country in the highest financial circles —trying to help, not to “decry,” the Ministry; but it has had to bo confessed that up to the present the opinion of Mr Massey’s inttuencial correspondent does,- not agree with the hard facts that are avauaoie. The “Press” has been studying some returns, and has been just as unsuccessful as ourselves in discovering anything to suggest that our credit has “gone up enormously.” An attempt to tail lightly is made by quoting prices of various Australian stocks. Thus we are told: “New fclouth Wales 4 per cents, have dropped £4 10s in the twelve months, fclouth Australian 3J per/ cents. £d, Queensland three’s £6 10s, Tasmanian 34 per cents. £7, and West Australian 34 per cents. £5. Also, South Australian 3 per cents, have fallen £lO and Imperial Consols in the same period by £4 15s. But this is surely getting away from the point. Mr Massey, or his unnamed friend, did not discuss the credit of Australian States, nor the price of Imperial consols. The claim is distinctly confined to New Zealand, and it is definite —that since the Mssseyites reached the Treasury benches our credit has gone up enormously in London. As a matter of fact, taking the period on which our article was based, taking the latest figures then to hand by cable, our stocks have fallen very considerably. Even on the showing of the Christchurch “Press,” one of the leading Ministerial journals, the London prices, of our securities have dropped in twelve months more than those of any State in the Commonwealth, with the sole exception of South Australia. Our contemporary fires one more shot in defence of the Prime Minister and his high authority. It is that the raising of a loan was enough to depress the New Zealand market temporarily. Very well We will go back three months to get clear of the loan-floating period. On November 29th last New Zealand 4 per cents, were £3, 34 per cents. £6. and 3 per cents. £6 10s lower than they were twelve months previously. If anybody can discover in these unchallengeable figures proof that our credit has “gone up enormously” we are prepared to listen. We desire, in fact, to be convinced that Mr Massey and his London friend are correct, and we shall be found ready, as already stated, with hearty congratulations when their claim is established. But we must have proof.