AMPLE FUNDS

Hokitika Guardian, 14 January 1929, Page 2

AMPLE FUNDS

DOMINION'S POSITION. INTERNAL LOAN ADVOCATED. AUCKLAND, .Jan. 11. Tile extraordinary financial position disclosed by tlie banking returns prompts the “New Zealand Herald'’ to comment as follows: “The people of New Zealand now possess a fund of many millions that could he diverted to the expansion of industry and production, as soon as conditions become sufficiently attractive and inspiring. Indeed, it is doubtful, whether employment could be easily i found for this extraordinary accumulation of money, especially as a revival of confidence would no doubt be as infectious as the mood of pessimism has been universal. A.s a remedy for this economic disorder the importation of many millions has been offered. It is manifest that the country has already more millions than it can use in its own activities. ’l’liis abundance has not yet been generally recognised, but. when efforts are made to move this great accumulation ot funds from temporary into permanent, investment, and openings prove too limited to satisfy the demand, the Government should be alert to seize the opportunity for an internal loan. The present flotation in London will probably be sufficient for the year’s requirements, but it has still to arrange the conversion of £12,000,000 before November. The transference of part of that debt to New Zealand would not only facilitate the main operation, but it would also undoubtedly enhance the Dominion’s credit with British investors. Favourable conditions for such a loan may develop quickly, and the Government should be ready to take advantage of them with every confidence that it can proclinm the country’s return to a prosperity greater probably than it has ever enjoyed before, and assist to consolidate that recovery by providing employment for its surplus wealth within the Dominion, instead of passively watching its exodus to other countries.”