DWINDLING LONDON RESERVES

Southland Times, Issue 23677, 28 November 1938, Page 5

DWINDLING LONDON RESERVES

ECONOMIST’S SURVEY OF NEW ZEALAND POSITION SYDNEY, November 26. Professor T. Hytten, economic adviser to tlie Bank of New South Wales, who has returned to Sydney after studying economic conditions in New Zealand, said that nervousness about the Government’s plans was apparent in New Zealand. “The most striking economic features about New Zealand, I found, are that the London reserves are dwindling rapidly, partly because of heavy imports, and that there is -definitely a flight of a certain amount of capital, some of which is going to London and some to Australia,” he said. Professor Hytton, who said he had discussed various problems with the New Zealand Minister of Finance (the Hon. W. Nash) and others, added, that the dwindling of the London reserves should stop within the K next month or so. The general experience was that the reserve funds began to grow in December and the following months. “I made it perfectly clear,” he said, “that I considered any control of exchange must be avoided, and I pointed out that I considered this a dangerous game.” . , , , . , Professor Hytten added that he had found the morale of the New Zealand people good.