CHEAPER MONEY.

Dominion, Volume 1, Issue 1967, 26 January 1914, Page 5

CHEAPER MONEY.

•;;:■ i - WELCOME IN NEW ZEALAND THAT "LEGACY;' STATEMENT BY THE PRIME MINISTER. The casing of tlio London money market, and its probable effect in New fenbiid, wero tUscusscd by tlw Right lion. W. I'. .Massey in a statement ho made to a reporter yesterday. "The drop in. tho rate of interest which has recently taken pI.K-o in London," said Jlr. Massey, "ivili be as welcome in Now Zealand as in many other countries in the world, for the very simple reason that when money is dear in London it is correspondingly dear in, every borrowing cUintry womb requires money for development or i.ther purposes. For tho last eighteen (ninths money in London nas been much dcaii'r than usual, and consequently, us wo depend to a great extent on Lyndon, .the rate of interest went up i<oro. Now that tho rate of interest in London is ! likely to Ret back to normal, we may expect a corresponding reduction in this country, and i. believe there will be a reduction. , "I. think it is well known that the New Zealand Government have vciy heavy liabilities to meet during'the present year in tho way of paying oil' a huge accumulation of short-dated debentures—a. legacy which oamo down to lis from our predecessors—and naturally wo are pleased at the change for tho better which has taken place-, and I.k>\ it will 1)6 ;i lasting change.- That «m could have got tlio money wc require goes almost without saying, because the credit of New Zealand is., good,. hut, tlm effect of the lower rule will ho folt by local bodies, by settlers, 'Mid indirectly by every class in tlio cnnininnity. I do not expect that tlio rate of 1 interest will fall to what it wns, say, between 1895 and 1900/ but, judging from present appearances, 1 finite expect that money will be readily obtainable in London at -i )>er eent. mt, or perhaps less, ami if so, wo should sijc.ii get hack to 5 per cent, as 'ho oidinary mortgage rate on good securities in this country.

"Wo must not forget, in ronuaetion. with financial matters, that we a:e ex--porioheiiig a good season, "With '.good crops of cereals, plenty' of. grass, for stock, and good prices i'or our esjjortsj sit that from almost every point of view the onl.hiol; is .j/vkk! andoiir prospect* satisfactory." ~