NEW ZEALAND CREDIT

Otago Daily Times, Issue 23529, 18 June 1938, Page 21

NEW ZEALAND CREDIT

WHERE IT USED TO STAND “THE WHISPERING CAMPAIGN” (From Our Own Correspondent) (By Air Mail) LONDON, May 25. On receipt of the cable message received two days ago from Mr Savage, that New Zealand is doing more trade with this country than she has ever done and that “ whatever contracts we make we will keep,” the Financial Times comments: _• “The statement made by Mr Savage, the New Zealand Prime Minister, to the effect that New Zealand is m a better position to-day than had been thought possible, will go some way towards reassuring the holders of New Zealand stocks who had become a little fidgety at the declines which have recently taken place in the market. The credit of New Zealand used to stand well above that of her Australian neighbours. Upon the New Zealand Government becoming to a marked degree a Labour Administration, investment became less confident. . . . There is no reason to doubt the sincerity of Mr Savage. His statement should be sufficient to still what he refers to as ‘the whispering campaign against the New Zealand Government.’ ” “GOOD WORDS” The financial editor of the Evening Standard writes: “A year ago Mr Savage attacked me for pointing out that the financial policies of the New Zealand Government would lead to a fall in bonds. There is no question of a whispering campaign. The facts are clear. New Zealand is set on a programme of expenditure which she will not be able to meet if the prices of her export products fall. “Mr Savage, however, says to-day that New Zealand is as intent on paying her way as ever she has been and that ’whatever contracts we make we will keep.’ These are good words. But, however well-intentioned our New Zealand friends may be, they will not be able to fulfil their bargains if private trading Is hampered and those who produce are overburdened.”