SHARE DEALING

Poverty Bay Herald, Volume LXIII, Issue 18973, 25 March 1936, Page 2

SHARE DEALING

THE “KELLY GANG" ATTACK BY ME. SAVAGE POSITION IN AIJCK LA X 0 .Not for the first time within recent years* the operations of the so-called ; ‘‘Kelly sam?*' of Anckland have been under’tlie five of criticism, but. on tins occasion, llie'position of the critic is an important consideration, says the Auckland Herald-.- The Prime Minister, the Horn ,\U.L. Savage, states that the C.o- ---’ vermnent will not stand lor mischievous ancl false propaganda from a small group of men .who are considering only llieu own interests. The Prime Minister’s reference to a “certain kind ot man. who grows fat bv engineering financial panic. suggests a belief' that there is a group of men in Auckland who are making capital, in' its monetary sense, out ol the present nervous state ot the invest- . meat market. Apparently there is an impression that there is a concerted move by-big interests to “bear’ the market for privfitc gain. OPINION OF SH A HEP ROlylvl IS Sharebrokers who were questioned regarding the presence in the market of such an unscrupulous group could not offer anv evidence of its existence. I hey denied, ‘in fact, that it did exist and further that they had had any knowledge of such a group during their long connection with the Stock Exchange, in their experience the persons who moved quickly on I lie Exchange were “outside ’ investors, who gathered their • information by a leakage in a company’s office or by some other means. Those who were in a position to know the full . facts moved slowly, as they had a reputation to consider. The men in Auckland recognised as 1 the subject ol the controvers.v preferred to carry their holdings and watch them appreciate in value. As a-matter of fact, the Stock Exchanges in New Zealand are not very familiar with ‘’bulls,” “bears, ‘ stags and all the other financial fauna. The speculative element has little room to ■ function, in the scattered and looselyi organised financial market of this country., where there is less credit facility for ■ operations. As a rule, the holder of . shares in New Zealand is an investor i rather than ; a. gambler. He is satisfied with the gains which come his way ’ without trying to engineer any.

! PHLEGMATIC NEW ZEALANDERS j : This applies just as much now as in ’ normal times on the market. Perhaps in another country the present situation A’ould make admirable provender for .bears,” but there is no evidence that (he rumours regarding the probable actions of the "Government, and their likely effect, are malicious or are de- ' signed for a particular purpose. The heaviest price falls have been in those ; stocks which, directly or indirectly, have -been affected by actual State interference or the definite promise of it. lhc standing of other issues makes them less , vulnerable to rumour. It is difficult to see what scope there can be for engineering a panic, especially when thephlegmatic nature of the average New Zealand investor is considered.