FINANCIAL POLICY

Hawke's Bay Herald-Tribune, Issue 179, 16 August 1937, Page 6

FINANCIAL POLICY

-Pre»» Aaan.

(By Telesr&ph-

— Copyright

AUCKLAND, Last Night. No resumptioa of borrowing on th ILondon market is contemplated by Nev, Moaland, according to a statemenfc mad-., jby the Minister of Finance (Hon. AY. jNash) in an interview. The Afinistc: iadded that New Zealand 's credit over sgeas was as good as ever it was, an; ao external obstruction's were bein;> jplaced in tbe way of the realisation oi ihe Government 's financial policy. "Interest xates on the London maiIket ara Mgher than they have been fcr lorne time,' ' Mr. Nash said, "and they may go higher still. However, on prcIfent evidence our secnrity is as good as any. Exeept for some propaganda published in the Evening Standard, which jappeared to me to be inspired from SjTenr Zealand, there was not a word said Idnriag my visit which reflected in any Way on New Zealand 's credit overseas. "I received a most cordial reception fn financial qnarters in the City of London. , Bankers and representatives »£ the great financial houses with whom k came in contact do not necessarily agree with whai we ara doing in New Zealand -with regard to matters of cnrrency and credit, but at least they ara eatisfied that we ourselves know what we are doing. What is more, fheir attitude is not in the least obstruct'ive, and I think we can even bo [assnred of co-operation as far as it is jrequired. f "Wa do not want to borrow abroad. jThere is certainly money available for investment in London, but money is jbringing & very fair Teturn in Britain jitself. There may be a xesumption of jBritish capital investment in the- DoJminions and if that takes place New feealand is likely to be favoured as imnch as any other country." j Mr. Nash said he had had the good ifoxtune to . meet. the Ministers of Finance and the financial advisers of *11 the eountries which he had visited. ■"With. the foreign representatives, ' ' »aid Mr. Nash, ' 'I discussed in full our .Ifinaneial policy and its implications and. gtated our belief that all currency should be baeked by production. They -were all satisfied that if we can do what We are setting out to do, we will overcoxne many of the difficulties which are at present affecting the world. However, they put forward the view that the realisation of our theories may be accomplished much more easily in a small country with a fairly well-defined national economy than in. larger eountries^ where the eetmomic conditions sre said to be much more comp'ex. "I can say quite definitely, ' ' added the Minister, "that what we are doing in New Zealand is being watched with the greatest interest overseas and" in no 'spirit of antagonism. We do not need to look for non-existent troubles in that direction.* -