DOMINION’S CREDIT.

Manawatu Standard, Volume LVII, Issue 219, 16 August 1937, Page 6

DOMINION’S CREDIT.

NO ANTAGONISM AT HOME. 4 HON. W. NASH’S BELIEF. Per Press Association. AUCKLAND, Aug. 15. No resumption of borrowing on the London market is contemplated by New Zealand, according to a statement made by the Minister of Finance (Hon. W. Nash), in an interview. The Minister added that New’ Zealand’s credit overseas was as good as ever it w r as, and no external obstructions were being placed in the w’ay of a realisation of the Government’s financial policy. “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 the present evidence our security is as good as any. Except for some propaganda published in the Evening Standard which appeared to me to be inspired from New Zealand, there was not a W’ord said during my visit which reflected in any w’ay oil New Zealand’s credit overseas.

“I received a most cordial reception in financial quarters in the City of London. Bankers and representatives of 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 curency ' and credit, but at least they are satisfied that we ourselves know what we are doing. What is more, their attitude is not in the least obstructive, and 1 think we can even be assured of co-operation as far as it is required. “We do not W’ant to borrow abroad. There is certainly money available for investment in London, but the money is bringing a very fair return in Britain itself. There may be a resumption of British capital investment in the Dominions, .and if that takes place New Zealand is likely to be favoured as much as any other country.” ,Mr Nash said he had had the good fortune to met the Ministers of Finance and the financial advisers of all countries which he had visited. “With foreign representatives,” said Mr Nash, “I discussed in full our financial policy , and its implications, and stated our belief that all currency should bo backed by production. They were all satisfied that if we can do what we are setting out to do we will overcome many of the difficulties which are at present affecting the world. However, they put forward the view that the realisation of our theories may be accomplished much more easily in a small country with a fairly well-defined national economy than in larger countries where the economic conditions are said to be much more complex. “I can say quite 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.”