DRIFT OF MONEY

Evening Post, Volume CXXVI, Issue 153, 2 December 1938, Page 13

DRIFT OF MONEY

TRANSFER OVERSEA

INDIVIDUAL FREEDOM

Reference was made today by Mr. David Henry, vice-president of the New Zealand Manufacturers' Federation, to the discussion at the federation's annual conference on Wednesday afternoon on the motion dealing with the transference of funds overseas, reported in yesterday's "Post."

Mr. Henry said that he had indicated that as we lived in a democratic country, and had always had full freedom of action regarding investments, it was wrong for delegates to reach conclusions hastily on this particular subject, as there was embraced in the motion a restriction on individual freedom of choice which he considered could not be approved readily without a full appreciation of its results.

"I pointed out," said Mr. Henry, "that just as our manufacturers have liberty to sell goods where they secure the best returns, it seemed illogical for them to deprive investors of the same freedom of action, and for that reason I opposed the particular motion referred to.

"My view is that money should be attracted into New Zealand and equally attracted to remain here, and that the potent power of attractions would be more valuable than the application of restrictive influences; but if the Government considers that the position of our overseas funds is sufficiently critical to justify the restrictive measures, I hope that these will be purely temporary. In common with every other person who is proud of New Zealand, I deplore the drift of money from this country, and my own view is that the announcement by the Government of the details of its plan for the further development oi manufacturing industries in New Zealand will do a great deal to attract capital into industry and witness a return of the funds which have gone overseas.

"Confidence is the chief corner-stone of our industrial fabric, and I feel certain that it will not be lacking when the public are fully informed of the Government's plans for developing industry."