THE MONEY MARKET.

Press, Volume L, Issue 14884, 26 January 1914, Page 6

THE MONEY MARKET.

STATEMENT BY THE PBBJE MINISTEI4.

' (SPECIAL tO "THE PRESS.") . " . WELLINGTON, January 25. \ The easing of the London monej market, and its probable effect in ♦***./_ ' Zealand, were discussed by the Bight' Hon. W. F. Massey/in a statement be : made to a reporter yesterday, '•The drop in the rate of interest ; . which has recently taken place in Loa- - don," said JUr Masaey, "will be as w#- . come in New Zealanu as in many otter countries of the world, tor mc »w simple reason that wnen money is dear - in London it is correspondingly aev in every borrowing country waica requires money for development or otfler purposes. i<or the last eighteen mtmta* . money in London has been BWJ dearer than usual, and consequently » ' we depend to a great extent on Wβ- - doc, the rate of iiiterest went up here-. Now that the rate of interest in London is likely to get back to normal, •• may expect a corresponding r e duc "X in this country, and 1 believe there wu*. be a reduction fKI . "I think it is well known that ,tw , New Zealand Government hare very heavy liabilities to meet during w . present year in the way of VW*& oS . * • h'lßo accumulation of short-dated «- benturcs, a legacy which came <&*?*: us from our predecrssors, and t» we are pleased at the change tor tne bettnr which ha* taken place, *no . bopo it will be a lasting change, low we could have pot the money, we quire roes almost without «jy i nß', D T, cans* the credit of New Zealand V good, but the effect of the lower r*w will be felt by local bodies, »* and indircotlv by every class »n t°ecoiv mnnity. I *» tint expect that the rs* of intoresr fall to what it *?•.«*..- ---hetwoon 1893 and 1000. hnt !*&&£ from prcfinnt appoarnnces I q«)te « . nrrfc than monpv will be readily Oβ-. faiiiaMp in London at 4 per cent. JJWor porfciir* l*>ss. and if w. we ehenw soon not har-k to 5 per cert, » w orr?i»nrv Tiortfr?cc« rate on good «* nn tie ,l ; n tbis country. . "W« m»H not forptet in ccnn?»o» . wit , ! financial matters that we are PCHcnnng a pood s*»nson. with R oroT« of oorpnis, plentr of E^ 58 !, A n«l pood nrir-cs for onr - ? o thpt frr- nlmost "vorr o,n * rfl !: .- . vir>n- t*«» nntlooTc « Rood, and onr;P"»----pecte satisfactory."