STANDS HiGH

Waikato Times, Volume 121, Issue 20273, 16 August 1937, Page 2

STANDS HiGH

NEW ZEALAND’S CREDIT.

NO BORROWING IN LONDON. ATTITUDE TO LABOUR POLICY. (Special to Times). AUCKLAND, Monday. “ New Zealand’s credit overseas is good as ever and no external obs;t notions are being placed in the way *.•: the realisation ot' tnc Government's financial policy,” stalen the Hon. W Nash, Minister of Finance, interviewed on Saturday. He reiterated that his Government had no intention of resuming oorrow'.rg on the London market. “ Interest rates on the London market are higher than they have been for some time,” Mr. Nash said, “and they may go higher still. However, on present evidence our security is as good as any. Except for some paganda published in the Evening Standard, which appeared to me to be inspired from New Zealand, there was not a word said during my visit which reflected in any way on New Zealand's credit overseas. “ } received the most cordial reception in financial quarters in the City of London. Bankers and representatives of the great financial houses with whom I came in contact do not necessarily agree with what we are doing in New Zealand with regard to matters of currency and credit, but at least they are satisfied that we our- | selves know- what we are doing. What iis more, their attitude is not in the | least obstructive, and I think we can i even be assured of co-operation as far ’ as It is required. British Capital Abroad. ‘ We do not want to borrow abroad. .There is certainly money available for • investment in London, but money is bringing a very fair return in Britain itself. There may be a resumption of private British capital investment in the Dominions and, if that take:? place, New Zealand is likely to be favoured as much as any other country.” Mr. Nash said he had had the good fortune to meet the Ministers of Finance and financial advisers of all the countries which he had visited. He had spent four hours with M. Grinko, Commissar of Finance in Russia, an hour with Dr. Schacht, the German Minister of Finance, and had lunched with Mr. H. Morgenthau, Secretary of the United States Treasury. He had also had financial discussions with Mr. Neville Chamberlain, who was Chancellor of the Exchequer in Great Britain when he arrived in London, Sir John Simon, who had succeeded to that office, and Mr. R. G. Casey. Mr. N. C. Havenga and Mr. C. A. Dunning, who wore responsible for the finances of Australia, South Africa and Canada respectively. Views on Theories. “ With the foreign representatives,” said Mr Nash. “I discussed in full our financial policy and its implications, and stated our belief that all currenoy should be backed by production. They were all satisfied that if we can do what we are setting out to do we will o\ercome many of the difficulties which are at present affecting the world. However, they put forward the view that the realisation of our theories may bn accomplished much more easily in a small country with a fairly well defined national economy than In larger countries where economic conditions ” I can say definitely." added the Minister, “that what we are doing in New Zealand is being watched with the greatest interest overseas and in no spirit of antagonism. We do not need to look for non-existent troubles in that direction.”