ATTACK ON N.Z. POLICY

Hawke's Bay Herald-Tribune, Issue 78, 19 April 1937, Page 7

ATTACK ON N.Z. POLICY

Telesrtaph — Pregs Assn.-

' k Rumoi$r-Mongermg" Says Financial News DAILY HERAID'S DEFENCE

(By

-Copyrisht.,1

(Reeeived 19, 12.30 p.m*) LONDON, April 18. New Zealand stocks Bnffered small declines as a result of the attack by the Evening gtandard, which the Finanojal News describes as "unfortunate rumour-mongering for which there is little eall in view ef the statements ?f Sir Austin Harris last July.'' ihe Bon. W. Nash had gone to Ber lin and was unable to reply to further •ittacts from the samo paper the, following day, extending over a column. The Daily Herald's City editor de votes an equal amount of space to ro futing ossertions that there is no justificauon for purehasing New Zealand securities at pre&ent prices but, or. the ccntrary, they should he sold and says : "Thr, Government's measures, so far from impairing .New Zealand's credit, have improved it and there has been a sharp movement of capital to New Zealand. Buttei is the crux of the situation. If farmers ate assured of a_ good price the Government's 40-hour weefe and Public Works programme can safely be carried out. Admittedly, there are dangerw in the guaranteed price scheme, If it is plaqed top bigh it may lead to over-production and inflationary borrowing, bnt the present world price .sdggests that the guaranteed price is eatisfactory provided the Government resists the temptation to pay the surplus to farmers when th© world price exceeds the guaranteed price." The hutter market is at present sensitive. Fluctuations are " wide, but there is little general speculation. The apple market is strong and marked preference is shown for coloured varieties. The Evening Standard had suggested that there was flight of capital from the Dominion, that the marketing machinery was cumbersome, and that New Zealand was heading for inflation.