PRESS COMMENT

Rotorua Morning Post, Volume 2, Issue 573, 3 July 1933, Page 5

PRESS COMMENT

GOVT. NOT RESPONSIBLE London, July 2. The Financial News says that Auckland's action has had the effect of widening all New Zealand quotations including Government loans. The Times city editor says that the gilt-edged market was unpleasantly surprised by the intimation that the coupons of the City of Auckland 5J per cent. Tramway Loan are being paid in New Zealand currency, resulting in their temporary omission from the official list. The Daily Mail says that holders previously received payment in accordance with the wording of the bond and received sterling in London. Auckland's decision is based upon the fact that the debentures were originally issued in New Zealand. As a result payment is covered by the House of Lords decision in the Broken Hill Proprietary case in January which allowed payment to be made in the currency of the country issuing the debentures. The New Zealand High Commissioner, Sir Thomas Wilford, told the FiiiSncial Times that he had taken up the matter with his Government and that it was by now fully acquaint«d with London's views. The Financial News describes Auckland's action as "a most impudent example of default for its a mere subterfuge." Continuing the journal states that it is nnfortunate that a conclave of town councillors should, hy. a hasty action, cast doubt upon the whole of New Zealand's credit which hitherto had never f altered. The Prime Minister of New Zealand, Rt. Hon. G. W. Forbes, said that his Government disclaim'ed any ' responsibility for the actions of local authorities.