PROSPERITY AHEAD

Hokitika Guardian, 15 January 1929, Page 7

PROSPERITY AHEAD

EFFECT OF NEW LOAN. (Auckland “Star.”) Tins spirit of optimism tlmt lias boon manifesting itself in business circles since tbo general election lias been accentuated by the cabled news of the arrangement entered into in London for the underwriting of a £7,1100,000 loan at 4£ per cent., that amount representing; new capital to be brought into the Dominion. “The most dreary and confirmed pessimist, must feel a little brighter to-day,” commented a commercial man this morning. “If New Zealanders” he said, “would only develop the same confidence in their country as the London investor has in the Dominion it would not be long until prosperity was again enthroned.” “Viewing the loan transaction from a commercial and not from a political viewpoint, the flotation not only in respect to the new issue but in regard also to the larger amount of £12,000, 0(H) for reduction purposes, will undoubtedly be regarded everywhere as satisfactory,” and Sir Janies dun,son. “The chief cause for elation,” he said “is in respect to the £7,000,000, which represents now capital for the continued development of the. country’s resources and other interests. It was absolutely essential that the borrowing should take place. Without this money many insistent demands for development works and public utilities could not have been mot. IMPORTANT UNDERTAKINGS. “I have no doubt that a considerable portion of the issue will he applied to important undertakings such as railway development and State advances to settlers,” continued Sir James. “These transactions coupled with the wonderful recovery of the Dominion’s favourable trade balance and the continued improvement expressed in high prices of the country’s primary product make for a revived era of prosjierity fo New Zealand, in which every section of the community will share.” When the Auckland Savings Rank announced some weeks ago a reduction in the rate of interest for mortgages, an Auckland financier expressed the opinion that it would need only one or two more such fiillips to bring back again to the people that spirit of optimism that was necessary to make business generally forge ahead. Referring to the loan transaction this morning lie said; “Prosperity is knocking at. our doors once again. Never in the history of the county have we had such an excellent season with high prices for our products, following on a previous good season. Apart from the influx of capital from our exports we are to receive £7,000,000 in cash. This means more new money available than has been in sight for many a year. FORTUNATE IN NEW ZEALAND “New Zealand is in a particularly fortunate position to-day,” was the opinion expressed by another business mail. “Our financial position is extraordinarily sound,” fie said, “anil the aftermath of war which we have heard so much about, seems to ho cleared up. The declared policy of the Government to foster land settlement has, in my opinion, had a good effect in London financial circles as the money magnate in England must realise that by devo loping the land and adding to our exports their security increases in value. If the Government is as quick to carry out its land scheme as they seem to he in providing money for development then the purse strings will he loosened further at Home and New Zealand will he able to obtain every penny of finance applied for. The Government however, cannot do everything singlehanded. The public must help and go on with that, confidence the country warrants. This has not been apparent in recent years, hut the tone of the people is undergoing a change, and the raising of £7,01)0,000 in cash is akin to the country having exported an extra £7,000,000 worth of produce.” FINDING AN OUTLET. The head of a large insurance business said that the capital coming into the country must find ail outlet, and, provided the people did not go ill too much for luxuries, the Dominion had the hall at its toe, and prosperity was staring us in the face. “We have had good .seasons,” he said, “and the high prices of recent times are going still higher. If the public can he made to realise that our prosperity depends upon what we produce all will he well.” “During last year we have been like a man standing on a springboard and afraid lo take the plunge,” was the humorous comment of a commercial man who has just returned from a tour of the Dominion. . “When 1 say this l am referring to the large amount of investment money available, the controllers of which have been unable to make up their minds as lo what they should do with it. Surely there can lie no hesitation now. We have a sound and progressive Government in power, good prices and good seasons; and a great deal more capital coming into tin* country. Wo must now put our shoulder Lo the wheel and show that spirit of progress which did so much for the country in pre-war day. The couutiy never looked better. Prices for our products have reached a height that is more than payable and New Zealand should once mole become tin* Mecca of the farmer, who will he sure of success if he does, his little job of work. A settled land policy will save the country and there is no doubt

that we are about to proceed on right lines.”

INQUIRIES FOR PROPERTY

Inquiries amongst land agents and firms administering trust moneys elicit cd the information that there are many more inquiries lor property than for some considerable time. The opinion was expresed in pi ore than one office tlmt the rate of interest was bound to fall and that there would be much more money available in luture for broad acres. All were unanimous that there are hundreds of thousands of pounds awaiting investment and that it only needed the arrival of the favourable moment for the direction of this capital into the channels that would help the Dominion forward. “The time has now come,” said one man, “and 1 feel sure that we are on the verge of renewed prosperity. Quite a lot of money has been going to Australia for investment in recent times, hut this will cease now and with renewed confidence all available capital will he taken up in our own country. The hanks have had a restraining effect as they know when a country spending too much on luxuries, and the hard times we have been through will no doubt spell a lesson in their expenditure in directions that are not remunerative.”