DRASTIC ACTION

Otago Daily Times, Issue 23688, 21 December 1938, Page 6

DRASTIC ACTION

THE INSULATION PLAN GOVERNMENT LEGISLATION VIEWS OF STOCK EXCHANGE “A large loan for Public Woil’s is to come on the market shortly,” remarked the chairman of the Dunedin Stock Exchange (Mr Harman Reeves) at the annual meeting yesterday. “ This will require to carry an attractive rate of interest in order to ensure public subscription. Since the last annual meeting, a genera] election has been held, and the return of the Labour Government by a very substantial majority reflected the vote of confidence of The people and the approval of its policy of advanced Socialism.” As Socialism was in direct conflict with old established British custom, and particularly the monetary side of its structure, sharebrokers, Mr Reeves said, naturally felt the effect more quickly than others of the business ' community. Members of Stock Exchanges dealt solely in the financial side of business. The manufacturers had their own associations, the farmers their unions, the importers and shippers their associations, all of which looked after the various interests of their particular branch cf business. “Members of the Stock Exchanges are dealing all day and all the year round in finance and in money in the form of stocks and shares.” Mr Reeves continued. “‘Of necessity, we have tq be and are alert to any movements for or against the financial interests of our clients, and of those who place confidence in our oninions and judgment. • This being so, I think I am justified in commenting on the effects .of recent legislation as concerns the financial affairs of New Zealand. ;. “A Drastic Action ” “We have now reached-the stage where the Labour Government’s insulation plan has been-.: introduced, by which export of capital!;from the Dominion, except under Certain conditions, is prohibited,” hie said. “ This is a verv drastic action for any Government to take, and is expected to be adopted only when the Empire is at war or in the case of great emergency, and not when our primary products are fetching fair market prices overseas, and the spending power of the people of the Dominion 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,” Mr Reeves concluded. , ’