MONEY FROM AUSTRALIA

Sun (Auckland), Volume III, Issue 920, 13 March 1930, Page 1

MONEY FROM AUSTRALIA

UNPRECEDENTED INFLUX TO DOMINION BETTER SECURITY 'Special'to THE SUN. WELLINGTON, Today. Brokers and investing agents indicate that there is a remarkable efflux of capital from Australia to New Zealand. This state of affairs they attribute to the present unquiet state in Australia, the lack of financial confidence, and the fact that New Zealand offers good security -for those in search of security, first and foremost, though interest rates may not be so high. Prominent bankers, interviewed on the subject, are unable to confirm the statements from their own experience, but they admit that New Zealand has always been a favourable field for the Australian Commonwealth, and lightly so. In addition, there has been some time in existence a practice of remitting money to New Zealand from Australia, and being granted financial accommodation in London at a cheaper rate. A marked increase in business during recent weeks, however, has not been noticed. v“ file other hand, two well-known inves{fs©nt agents state that they gave recently received information from their Australian connections to the effect that there are substantial sums waiting to be placed in trusteesecurity in the Dominion. In some cases gilt-edged security is stipulated, but in others any good security will b© tawen at a stated rate of interest On top of this 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.