NEW ZEALAND'S POSITION.

Press, Volume L, Issue 15037, 4 August 1914, Page 10

NEW ZEALAND'S POSITION.

BANK CHAIRMAN'S STATEMENT,

WARNING AGAINST PANIC;

• (SPECIAL TO "THE PRESS.") WELLINGTON, August 3. Tlie chairman of tho Bank of New Zealand (Mr Harold Beauchamp), on being interviewed by your representative this evening, made.some rea'ssiiring and" interesting statements . regarding the financial position at Homo and in the Dominion. Mr Beauchamp prefaced his remarks by quoting the following extract from an article which appeared in , a leading financial jpurnal in London as recently, as June 13th last:— "Since last week conditions in the money market have become more and more easy, with abundant supplies of floating cash, and day to day money is often obtainable at less than two per cent. Thursday's bank return was a good deal more satisfactory as the reserve was nearly one and a quarter 'millions higher than. -.last week, including an acquisition' 4 of £6-17,000 of gold from abroad. The city failures,, which* are dealt with. elsewhere, have cleared the air, and it is thought that the .worst liquida-. tion is over so far as London is concorned. The discount rate is now no better than two and a "half per cent, and the conditions at Homo, in the / United States, and on the Continent, portend inactive trade and cheap money." . - Proceeding, Mr Beauchanip said >-f "Tlio bank rate was then three per cent, and it remained at that, figure until Thursday last, when with the advent of war* clouds, it was raised to four per cent. Two days later, at ah extraordinary meeting of the Court of Governors of the Bank of England, it went with a bound to ten and ten and a half per cent, for discounts and loans at short datfes respectively. That is the best indication of the state of the commercial barometer at the moment, and it emphasises the extraordinary means that are being adopted by the Bank of England to prevent an efflux of gold. In addition, it is anticipated that to-morrow the Bank Act will be suspended. With the suspension of the Bank Act, Mr Beauchamp stated, Bank of England notes will be no longer convertible, and it will thus place tho central institution in a position to hold whatever gold and specie it may [ possess in its vaults."

POSITION IN NEW ZEALAND. * In turning to the financial position iv New Zealand, Mr Beauchamp said: —"Some weeks ago the Government ->f this Dominion placed oh the stocks a Banking Amendment Bill, which wa_? subsequently introduced into the Homo, and with practically no opposition passed its second reacting, probably ou the ground of prudence.''The House will now bo asked to pass the Bill through its remaining stages with ;is little delay as possible. "Thero is no possible suggestion," continued Mr Beauchamp, "of a uaiiic. 'at the moment, and it is to be sincerely trusted that the people of this country will not indulge in hysteria iv any shape or form."