FLIGHT OF CAPITAL

Wairarapa Age, 30 July 1936, Page 5

FLIGHT OF CAPITAL

PRIME MINISTER RIDICULES SYDNEY REPORTS. ORIGINATED BY SOMEBODY WITH AXE TO GRIND. NO SHORTAGE APPARENT IN DOMINION. WELLINGTON, July 29. Cabled reports from Sydney to the effect that there is a marked flight of capital from New Zealand to Australia were referred to by the Prime Minister (th© Rt. Hon. M. J. Savage) in an interview to-night. “The stories probably originate from somebody with an axe to grind” the Prime Minister said. “If people show any inclination to believe these reports, all they need to do is to look at the Post Office Saving* Bank deposits which are over £3,000,000 in advance of the peak figure for years before the depression. That certainly does not indicate anv flight of capital.” •

Mr. Savage also referred to the recent flotation of a brewery company in Christchurch. According to all reporta that company had experienced no difficulty in obtaining the necessary capital. Any marked flight of capital would be accompanied by uneasiness in business circles, but business generally in the Dominion was brighter than it had been for years. The Prime Minister added that he had been informed that at this time of the year there was frequently a seasonal transfer of funds to Australia. Probably on this occasion the normal proceeding was being magnified for propaganda purposes.—(P.A.)