PROMPTITUDE ESSENTIAL.

Taranaki Daily News, 11 July 1933, Page 6

PROMPTITUDE ESSENTIAL.

It is unfortunate that at a time when the - Prime Minister’s statement of the efforts made by New Zealand to fulfil her obligations had been so well received there should be any action taken likely to prejudice the Dominion’s credit. Important London newspapers endorsed and commended Mr. Forbes’ recital of the steps taken by New Zealand to cope with the depression due to causes beyond her control, and the Secretary for the Dominions, the Rt. Hon. J. H. Thomas, emphasised that belief in the integrity of New Zealand in England was greater than ever. Yet within a day or two of those utterances another New Zealand security was removed from the official list of quotations of the London Stock Exchange. Tire security is that of debentures issued by the Auckland Harbour Board, and the standing of the board is

quite sufficient to make any New Zealand investor regard them as the soundest of gilt-edged securities. Apparently there has been no question of the payment of interest in sterling, as was the case in regard to the Auckland Transport Board's loan, but a claim by the New Zealand authorities that the debenture tax must be paid by holders in Great Britain as well as those in New Zealand. The consequence is that de-benture-holders are protesting and the Stock Exchange has withdrawn the debentures from the official list of stocks and shares. It seems a matter in which prompt action is essential if New Zealand’s credit is not to suffer. There is no indication of the sum involved in regard to either the Transport Board or the Harbour Board debentures, but it is evident that whatever may be the cost to meet the wishes of the bondholders at Home it will be much less than that of any general forcing down of the price of New Zealand securities. Lack of confidence is sure to lead to a fall in prices, and the sooner the position is satisfactorily cleared up the better for all concerned.