MONEY MARKET.

Press, Volume L, Issue 14986, 5 June 1914, Page 8

MONEY MARKET.

GLOOMY "LIBERAL! , PROPHECIES GROUNDLESS. • In "Liberal" circles recently- there has been some foolish talk about the price of money., Thie .talk has, of course, no motive save the injuring of the Government, which the Opposition somehow thinks is the regulator of the rate of interest. : . ~ With a view to ■ obtaining the actual facts ■from authorities of unquestionable etanding, V representative of Ino Press" had chats with several prominent business men of Christchurch yesterday, and asked their opinion on the etate of the money market ;as compared with last year and their'ideas, as to future developments. ■ . . ' . ' Asa result of. theso conversations, it appears to be fully demonstrated that tho'allegations of the "Liberals" are groundless, and that the position at the present time gives,cause for congratulation and not alarm and condemnation. Tho fact is that:mortgage money is decidedly more plentiful, and tbare is no great difficulty, ib arranging flat mortgage finance on properties at a rate of interest % per cent, less than last year. At the sam© time, one gentleman interviewed expressed the opinion that rates,will not get easier ! until after next eeaeon's produce is mar[keted. „'-. ■•-..' ,'•'.' ! As-a result of further short interviews on the situation, it would appear that there is litfclo likelihood that rates of interest will go "up. At the present time there are considerable amounts of money, in'sums .of £500 to £200, off err ing for investment in gilt-edged securities at 5 per cent., and one firm alone has, on behalf of clients, put out money to the extent of £14.000 to"£15,000 at low rates of interest. For larger sums of money lenders are asking 51 per" cent., and .this fato certainly is being obtained. u There is another factor in the present position," said a business man, "that should tend to keep tho rate down, and that is, that it is particularly hard to get gqod securities on broad acres. The position and general outlook were never better than they are to-day, and without exception s high prices are ruling for all the primary products that form such a great proportion of the country's" wealth. Then, again, the Government finance is now easier, and these two factors must tend to keep down the money market to its normal state. It js ;rue that. a. large trust estate may be remitting Large sums of money to beneficiaries in England, in which event there will be calls on the local money market to replace investments. My own opinion is that rates of interest will range from 5 to •β-j-"' per cent., according to the class of security offered. Thore was no 5 per cent, money to bo got last year, and it is plain that the price of money is now i to 1 per cent, better than at this time twelve months ago. A good deal of this state of affairs is due to tho Government, which has dealt liberally with its loan policy, making it easier for those in need of money to get larger sums than was possible before."