LOST CONFIDENCE

Taranaki Daily News, 23 December 1932, Page 12

LOST CONFIDENCE

LEGISLATION IS BLAMED :• effect on business.' MONEY FOR INVESTMENT. Dunedin, Dec. 20. < “Until the Parliament of this country stops tinkering with legislation allegedly designed to assist the Dominion we will never get out of our troubles,” said the Chairman, Mr. Harman Reeves, at the fiftieth annual meeting of the Dunedin. Stock Exchange to-day. He was referring more particularly to the recent mortgage relief legislation. “The Parliament Of a country in these, days,” said Mr. Reeves; “plays such an important part in the rise and fall of stocks and the welfare of the business community generally, that. I make no excuse for saying that it is pity the Parliament of this country could not be closed up for some time in order to let conditions right themselves. Although we as an exchange are not directly interested in legislation affecting mortgages, I think it is a pity legislation of any sort hab been introduced to interfere, .with the sanctity of these contracts. Left alone the differences between the mortgagee and mortgagor would have righted themselves. An and want of confidence has become so manifest recently that it permeates every • business, and until the Parliament of this country stops tinkering with legislation allegedly designed to assist the country, we will never get out of our troubles. “There are vast sums of money lying on deposit in the banks, waiting tor an opportunity tor investment when confidence is restored. That one word ‘confidence’ is the keynote to the whole position.

“A few months ago it was stated authoritively that our Governmental position was improving, and'that the general outlook was bright. Investors and traders generally believing this to be true, took confidence in the future, and a marked improvement became manifest in all business and trade, in the community. Investment stocks began to improve, Government securities hardened on the market, and money was beginning to circulate so freely that it looked as though we were in for an era of cheaper loan money. This confidence was utterly shattered toward the end of November, by Press statements from Wellington that the state of the country’s finance was such that it might be necessary to have an emergency session in the New Year, and the/whole country pulled up with a sudden turn. “To-day there is a lamentable lack of confidence, which will take some time to dispel. I believe the present Coalition Ministry is doing its best in a most difficult position, and deserves the thanks of the community for its efforts. “It is a most unpleasant job, and I am confident if left alpne they , will yet put the Dominion’s finances bn a sound footing.”