NEW ZEALAND’S CREDIT.

Otago Daily Times, Issue 21021, 9 May 1930, Page 10

NEW ZEALAND’S CREDIT.

• MONEY MATTERS AT HOME. SIR MARK SHELDON INTERVIEWED. (Special to Daily Times.) WELLINGTON, May 8. Financial conditions abroad as they relate to Great Britain and their effect upon New Zealand trade were discussed by Sir Mark Sheldon, the prominent Sydney financier, who arrived from San Francisco by the Marama to-day. Sir Mark is accompanied by his son, Mr Cuthbert Sheldon. He has been abroad since January, and he will leave for Sydney by the Maunganui to-morrow. "New Zealand's credit is good abroad," said Sir Mark, "and it ranks just after Canada among the dominions. This has been brought about by the good Government of New Zealand during the past ten or 15 years and the country'3 restraint in its borrowing policy. Although the prices for wool, butter and other exports have fallen this fact is causing no alarm oh the other eide, as it is recognised that prices for these Taw product* must rise again. "There now arises the question concerning manufactured goods. Prices for them have fallen only minutely, compared with the fall in the raw products, therefore, manufactures have got to fall in price or'raw products have got to rise. This is an economic fact, which is fully recognised. Whatever happens, New Zealand through her moderate tariff will get the benefit. " I think the tendency will be for the Bank of England rate; to remain as it is now, at any rate until the end of the English summer," Sir Mark said it discussing finance at Home. " I should say' there would be a tendency, for the rate to advance at the beginning of the winter. Loose or day to day money is cheap, but investment money is very scarce in London. The reaßon why loose money is plentiful is that there is a loss of confidence in buying'raw products, and, therefore money usually put out on these articles is not needed for a permanent inveotment. Everything is looked at very carefully. This tightness' has been brought about by the accumulation of gold by France. <• She is now the second largest goldholding country in the world, with something like £400,000,000 worth of-'gold, or more than twice as much as that held by England. This has disturbed the money market very considerably.' "October's break in the New York Stock Exchange and the Hatry collapse in London brought about a feeling of unrest, and also an extreme want of confidence. It takes some time for that" to heal up, but when it does we can look for a change. The general opinion is that there will be a favourable deal made shortly in the London money market through the conversion of some of Great Britain's funded debt at more favourable rates than she is payinc at the moment." . ° Sir Mark added that there was not a great deal of American capital finding its way to Europe at present. In the past five or six years she had loaned large sums to Germany for municipal and other purposes. The question was being asked whether Germany could carry the burden' of these American Joans and at the same time pay her reparations. The general opinion w aa r. ha _ t . I S? rman y would be ahle to meet her liabilities. Sir Mark said that America was not lending anywhere near the amount of money abroad that she .was when he was in England a year ago