DOMINION CREDIT DEFENDED

Hawke's Bay Herald-Tribune, Issue 74, 14 April 1937, Page 6

DOMINION CREDIT DEFENDED

Hon. W. Nash Replies to London Newspapers NO FLIGHT OF CAPITAL LONDON, April 12. Tke New Zealand Minister of Finance (Mr Walter Nask), commenting on a fierce attack on New Zealand 's credit ,by tke Evening Standard, declared that it was ridiculous to suggest tkat capital was fleeing from tke Dominion. On tke contrary, the opinion of reputable investors was sufficiently indicated by tke quotations of New Zealand shares, wkick compared satisfactprily witk those of Englisk and Australian securities, and showed tkat informed men in the City appreciated the scrupulous care tke New Zealand Government kad takcn iu its recent legislation to ensure justice to investors. Tke balancing of tke Budget afforded evidence of tke soundness of the finanees, and ' exports and imports were iu tke healtkiest position for a decade. * Befuting criticism of tke marketing machinery as cumbersome, Mr Nask declared it was tke siiptplest and most straightforward plan under wkick New Zealand 's produce had ever been marketed, and Tooley. Street agents, altkougk tkeir commission kad been reduced, were well content. ■ Mr Nask added * tkat tke suggestion ithat New , Zealand was heading for 'inflation* because only tke viewe of inexperienced idealists and fanatics were keeded and tke good adviee of business men was ignored "was - absurd. Every responsible person in New Zealand •realised tkat welfare could 'iiot come from monetary manipulations. Tkis simple truth was not a ne'w discovery by tke London journalist, wko, wkile waraing investors not to purekase New Zealand stocks, curiously advised tke purekase of Japanese bonds, of wkick tke City's opinion, vis-a-vis tkat of New Zealand, was ' sufficiently indicflted by tke prevailing. quotations.. "All the influentjul .people I kave met in Britain,". ke added, "are satisfied witk tke bona fldes of the* Government 's financial policy,- and their confidence is in striking cbntrast- witk tke spirit of tke article in the Standard. Irresponsible criticism , in Britain or ' elsewkere will not deter tke Government carrying out tke plain mait^:te of tke electorate to ensure an adequate return to the producer of foodstuffs."