TIMID INVESTORS

Taranaki Daily News, 23 July 1929, Page 12

TIMID INVESTORS

HALL-MARKING OF SCHEMES,

MONEY IDLE IN BANKS.

Auckland, July 21

The institution of a system whereby official approval would be given to investment schemes by a representative committee of business men in order to effect the release of large sums of money lying idle in the banks was advocated ’by Mr. M. H. Wynyard, chairman of the Auckland Harbour Board, in an address at the Commercial Travellers’ Club last night.

Mr. Wynyard deplored the fact that, although’ money was more plentiful than it had been for years, little of it was being invested. As a result progress in many directions was being arrested. The country needed more ready money for investment in sound schemes, and if this could be obtained the present unemployment difficulties ■would be materially assisted. The nature of investments had changed noticeably. A few years ago the majority of investments were in farm properties, but on a slump being experienced investors turned to other things. Had it not been for the fact that the Government went to the assistance of farmers, conditions would have been much worse than they were to-day. City and suburban building investments later claimed attention, but these had not proved successful, and at present very few investments were being made, except in local body debentures. There appeared to be little else attractive enough for the investor, and some form of guide should be given to those who could assist in keeping money in circulation instead of lying in banks.

The Associated Chambers of Commerce might do useful work in appointing a special committee for the purpose of investigating schemes advanced for investment purposes, said the speaker. Quite a lot of money would be saved, and many investments worthy of public attention would be given needed prominence if something of that nature were done. Much good might attend a scheme whereby a responsible body gave its approval to proposals which it considered were good, and indicated those which it did not consider good. This would give satisfaction to investors and no doubt open up money for works now being held up for lack of confidence on the part of the investing public.