PRESERVE GOOD NAME

Taranaki Daily News, 11 July 1933, Page 6

PRESERVE GOOD NAME

OVERSEAS INTEREST DUES PAYMENT IN STERLING DESIRED. VALIDATING MEASURE PROMISED. ANNOUNCEMENT BY MR. COATES. By Telegraph—Press Association. Wellington, Last Night Tlie Rt. Hon. J. G. Coates in a statement concerning English uncertainty regarding the application of the interest reduction measure to securities having optional domicile in New Zealand or London, says the original intention of the Government was not to impose the reduction on securities held in London. The legislation provided that the reduction should apply to those securities upon which the last payment of interest was made in New Zealand not later than January 1. Certain of these optional securities had since found their way to England, being purchased in good faith. The investors were now finding that the securities were subject to the interest reduction. The Government intended that the reduction should apply to New Zealand nationals only; consequently the Government had agreed to introduce amending legislation next session exempting from the reduction securities sold in London not later than July 1, with the distinct understanding that should the interest coupons be cashed in New Zealand the interest reduction would apply. The Stock Exchange had agreed not to deal in exempted securities. Mr. Coates also referred to the effect of the English Appeal Court decision regarding the Broken Hill case, saying the attitude of the Government was that there was a moral obligation to meet interest in sterling where debentures were issued in exchange for>m<?neys received in London pursuant to the terms of a London prospectus. If such payments contravened the law the Government would introduce legislation validating payments in sterling. . _ The- Government was determined to maintain the reputation of the Dominion for fair and honourable dealings. An announcement of the terms of this statement was to be made in London to-day.