NO CONFIDENCE

Hokitika Guardian, 23 December 1932, Page 8

NO CONFIDENCE

RESULT OF LEGISLATION

STOCK-BROKER’S OPINIONS

DUNEDIN, December 20

“Until the Parliament of tins country stops tinkering with legislation allegedly designed to assist thiy Dominion we will never get out of our trouoles,” said the chairman, Mr Harman .Peeves, at the 50th annual meeting of the Dunedin Stock Exchange to-day. He was referring more p.'.rticu.arly to the recent mortgage relief legislation.

1 “file Parliament of’ a country in these days,’' said Mr lteeves, “plays such an important part in the rise and fall of stocks and the. welfare of the business community generally that I make no excuse for saying that it is a pity that the Parliament of this country could not be dosed up for some time in order to let conditions right themselves. Although we as an Exchange are not directly interested in tile legislation affecting mortgages, 1 think it is a pity that legislation of any sort hag been introduced to interfere with the sanctity of these contracts. Left alone, the differences between mortgagee- and mortgagor would have righted themselves. An uneasiness and . want of confidence have become so manifest recently that, it permeates every business, and until tile Parliament of this country stopte tinkering with legislation allegedly designed, to assist the country, we will never get out, of our troubles. 'JL'ere are vast sums of money lying on deposit in the banks waiting for an opportunity for investment when con- | fidence is restored, rhat one word, | ‘confidence,’ is the keynote to the whole 'position.

CONFIDENCE LACKING

“A few months ago it was stated authoritatively that our Governmental position was improving, and that' the general outlook was bright. Investors and traders generally, believing this to be true, took confidence in' tire future, and a marked improvement- became manifest in all business and trade in the community. Investment stocks began to improve, Government securities hardened on the market, and money was beginning to circulate so freely that it looked as though we were in for an ora of cheaper loan money. This confidence was utterly shattered toward the end of November by Press) statements from Wellington that the state of the country’s finance <vas such that it i might be necessary to have an emergency session in the New Year, and the whole country was pulled up with a sudden turn. To-day there is a lamentable lack of confidence, which will take some time to dispel.'

•“i believe the present Coalition Ministry is doing its best' in a most difficult position, and deserves the thanks of the Community for its efforts. It is a most unpleasant job and I am confident that if left alone it will yet put the Dominion’s finances on a sound footing.” ’

THE MONEY MARKET.

LOCAL BODY LOANS

DUNEDIN, December 20,

:■ An interesting reference to the question of local body loans on the London market, was made by the Minister for Finance (the Hon W. Downie ■Stewart) in the course of his address to the Manufacturers’ Association last night. Mr Downie Stewart said that when he arrived in London the market had been closed owing to British conversion operations, but while he was there it begun to open up again. He had been told by a London financial adviser that the question arose of the accommodation of local bodies whose loans were falling due. Borrowers whose loans were due had to fie looked after before those whose date of redemption was less imminent. The second aspect of the position was largely technical. A loan raised by a local body in New Zealand did not need to be earmarked for a purpose. It had been emphasised that it was sufficient to name a loan as a Dunedin dr a Wellington loan at a certain rate of interest for a definite period. The purely local question of purposes to which loan money would be 1 devoted did not concern investors in the least, and financial interests at Home would far rather no mention was made of such details. He had asked the head of the Treasury to take up the matter with the Local Bodies’ Assocition, and he thought something would be done in the matter. It would probably require some legislation, but that couid be arranged.