SOUND INVESTMENTS

Nelson Evening Mail, Volume LXIII, 24 July 1929, Page 6

SOUND INVESTMENTS

111 NCI lONS 01 : STOCK IiXCII ANCiIiS Mr VV. !1 Wynyard, chairman of Mm Auckland I! irbo'ur Uuard, is reported to hive suggested LL.tt (ha As.victa.iad Chambers of Cumuu'ivc miglil app.mil a, special committee to investigate schemes advanced fur investment purposes* lie is also said to have remarked on money thai would be saved and attention ihal would be drawn lo investments worthy of public attention if reported on by such' a ciilniuillee of investigation as hi' suggests. The idea caused some as lonisliiiielil among Wellington stuck ami sharebrokers, beiause they could uo| ■ ee the need of anything of tin- kind propos. ed by Mr Wynyard. Mr R. Wvnu Kirk, by, chairman of I In- Wellington Stock Exchange, speaking lo a representative of "The Post" 1.111 this proposal, was in agreement with Mr Wynyard that the country needed more ready inonev for "investment In sound schemes." That was the whole point -sound schemed. Now among Ihe fund ions of the stockbroker is assistance lo clients in investment in round scheme.-,. The Slock Exchanges of the Dominion were governed by very strict rules in regard to the lifting of companies' shares. Prospectuses of new companies are very care fully scrulinired by all i-xcliangesin the Dominion, and are reported upon, ami this is done in order thai the scrutiny may be I borough, ami so that any point one Exchange may have missed will he discovered by another. "Ii seems pi me." continued Mr Kirkby, "that such a commit 100 as Mr Wyn yard suggests would be superfluous, 'because the need is already fully met by Ihe Stock Exchanges so long as Ihe public docs its business through an active member of a Slock- Exchange. The shiirehavvker, Ihe seller of shares and bonds from door-to-door, is not countenanced by the Slock Exchanges. Hus-i----iicHs is not done thai way. If people buy shares from glib salesmen in that way they do so al I heir own risk. lam repeatedly hearing of people who are investing money in this way. instead of seeking the assistance and advice of the legitimate stockbroker, whose interest, it is'tc safeguard his clients from liskin..-; their money in ventures, the success of which is doubtful. The Slock Exchanges are trying their utmost to circumvent the itinerant share) hawker. "I cannou agree with Mr Wynyard that at present, very few investments are being made, except in local body debentures, and Ihal I here appeared to he little else to attract the investor; nor docs the record of business done on the Stock Exchange day by day bear him out. There is quite a lot of business being done in investments such as bank and insurance and shares of a similar high-class character. At any rale there was no call for such a. committee of business men to advise the investing public, aw that work- has always been done, and continues to be done, by tin? Stock Exchange's, whose members are only 100 anxious to advise their clients and prospective investors what to do and what, not to do with moneys available for investment."