THE MONEY FLOW

Hokitika Guardian, 26 March 1930, Page 2

THE MONEY FLOW

AUSTRALIA AND NEW ZEALAND

WELLINGTON, March 21

Brokers and investing agents indicate that there is a, remarkable efflux of capital from Australia to New Zealand, investment beginning at a rate which alls not been m existence at any time in past years. Ibis state o affairs, which is now being felt for the first time, they attribute to the present unquiet state in Australia, tlie lack of financial confidence, and the fact that New Zealand offers good security for those in search of security firsti and foremost, though interestrates may not be so high. Prominent bankers iiuerviewed on the subject are unable to confirm the statement from their own expenen e but admit that New Zland has always been a favourable field for the Australian Commonwealth, and rightly so. In addition, there has been some time in existence a practice of remitting money to Now Zealand f.Olll Australia and being granted financial accommodation in London at a cheaper rate. Marked increase in business during recent weeks, however, has not been noticed.

Two well-known investment agents, however, state that they have recentlyreceived information from their Australian connection to the effect that there are substantial sums waiting t. be placed in trustee security in im Dominion. In some cases gilt-edged security is stipulated, but in others any good security will be taken at a stated rate of interest. On top of thb comes the fact that the principal of one of the very largest concerns in either Australia or New Zealand recently visited the Dominion, and stated that he was withdrawing his money from Australian investments and meant to reinvest on this side.