SOCIAL LAWS.

Waikato Times, Volume 123, Issue 20635, 22 October 1938, Page 7

SOCIAL LAWS.

NEW ZEALAND CREDIT PRESS COMMENT IN LONDON ALTERATION IN THE EXCHANGE • United Press Assn.—Elec. Tel. Copyright' (Received Oct. 22, 11.30 a.m.) LONDON. Oct. 21 The Financial News points out that the alteration in the New Zealand exchange was only of technical significance. It was a long-overdue remedy for the trading banks’ loss when they obtained sterling from the Reserve Bank. The Financial Times says the move was necessary to enable the trading banks to conserve their oversea balances. The Economist says: “New Zealand credit has long felt'the consequences of the Government's efforts to improve the lot of the dairy farmer and the ordinary citizen, which are commendable in principle if costly in practice. Despite Mr Savage's assurances the British investor cannot regard the future without anxiety, owing to New Zealand being faced with an ever-recurring transfer problem. The substantial decline in trade in 1938 suggests that the export surplus will again be insufficient to provide £lO.000.000 to service the Government's debts in Britain. “ Meanwhile stocks remain deflated, although the falls ranging to four points since April, when pensions at 60 years of age were announced, are not entirely attributable to the general reaction against fixed interest securities. “ Mr Savage’s first problem in connection with the British investor is the repayment of £17,000.000 worth of 3i per cent, stock in January.” CRITICISM OF NEW ZEALAND THE COUNTRY MUST PAY (United Press A:sn.—Elec. Tel. Copyright) LONDON. October 21 The city editor of the Daily Mail, commenting on the fall of the New Zealand pound, says, despite Mr Savage's reiterater assurances that capital is safe it is becoming increasingly plain that the country cannot escape paying, sooner or later, for the extravagance of the recent socialistic legislation.