NEW ZEALAND CAPITAL.

Wairarapa Age, 28 July 1936, Page 5

NEW ZEALAND CAPITAL.

LARGE AMOUNTS CROSSING TASMAN. INVESTMENT IN AUSTRALIAN SECURITIES. ONE RESULT OF RECENT LEGISLATION. SYDNEY, July 27. The Sydney “Daily Telegraph” says that the flow of New Zealand money for investment in Australian securities, which increased greatly in the last six weeks, has been largely responsible for the big advances in the leading industrial stocks. The influx can be traced to nervousness in New Zealand duo to the accession of the Savage Government and to legislation enacted by that body. New taxation proposals directed against large incomes may even accentuate the present uneasiness. When Mr. Savage first became Prime Minister, says the “Daily Telegraph,” money was attracted to the Dominion by his assertion that he would restore the New Zealand pound to parity with sterling by stages. When this was found to be impracticable, however, the funds so attracted were quickly repatriated. Normally there is an intermittent inquiry on New Zealand ac> count for Australian banks, Colonial Sugar, and certain other stocks with New Zealand affiliates, but this has now developed, into an everyday demand. With the limited field available for investments of the type sought On New Zealand account, prices for the highest class of industrials, and even for fixed interest-bearing Australian securities have risen. The downward ™ Pfi«» of Australian consolidated stocks has been checked, and such stocks as Australian Glass and the ro°ri. e » n Proprietary have advanced levels nn re oord. On the other hand, Bank of New Zealand di On whi< ’’ l 10 P« r cent n been con ">"tently paid, have fallen from 49s to 41s, purely bfr cause of New Zealand selling. 7 thron ir h out the ComvhaXe “"eased by £3,154,169 m the last quarter, but it is nr<^rf t? ° d t^ at ,°. nl - T a relatively small N.TTXd f mon:y. inCre “ e