Thank you for correcting the text in this article. Your corrections improve Papers Past searches for everyone. See the latest corrections.

This article contains searchable text which was automatically generated and may contain errors. Join the community and correct any errors you spot to help us improve Papers Past.

Article image
Article image
Article image
Article image
Article image
Article image
Article image
Article image
Article image
Article image

THE MONEY MARKET

PROSPECTS FOR THE FUTURE

ERA OF DEAR MONEY EXPECTED

The prospects of the money market were mentioned in the course of an interview by Mr. Harold Bcauchamp, chairman of directors of tho Bank of New Zealand, who' returned io Wellington yesterday, alter a visit to, Europs. Whilst Mr. Beauchamp was in London, money for day fo day and weekly loans, was cheap and abundant, rates ruling from 2 per cent, to i per cent, per annum. The Bank of England rate, which, for some time, had remained steady at 5 per cent., was raised early in November to 0 per cent, and Treasury bills which hn<l previously been issued fo yield investors 3 per cent, and & per cent, for three and six months' currencies respectively, were, with tho alteration in the bank rate, sold at rates to return buyers 51 per cent, for either three or six months' currencies. Mr. Beauchamp remarked that, whilst these rates'iwero ruling in London, it was interesting to note that loans, at short dates in New York,, were being made at 0 per cent, and 7 per cent, per annum; but on November 15, owing to an enormous amount of money being required to complete heavy stock exchange purchases, 30 per cent, per annum was paid for .short loans in New York—the highest rato ever touched since the panic in 1907. "Personally, I think? we are in for an era of dear money," Jin added, "especially in Europe, and the United States and Canada, and it will be. interesting to see how long it will be before there , will \>o a reflex action in ike Dominions, which, owing to tho very large surplus of exports over imports during the past six or seven years, have continued in such a delightful and enviable position of financial ease. Money, like water, lias a tendency to find its mvn level. For somo of our products, wonderfully high prices have recently been realised. For example, as much as 3uod. per lb. for • rabbitskins, and 513 d- per lb. for elipe wool, whilst for a line of supermerino fleece wool groirn in Victoria, the Tccord price of 12-! d. per lb. was '\ , paid in public auction. This was bought for re-export to Switzerland. Tho market prospects, for all descriptions of our primary products.' in Great Britain, tho Continent of Europe, and tho United States of America, are, in my opinion, most rosy. .

"Speaking of wool reminds me of tho justifiable dissatisfaction at tlio unconscionable delay that has occurred on tho part of tho Imperial Government, in accounting" to {trowel's of fleece wool, in Australia and New Zealand, for surplus profits on wool sold in open market, awl not required for Army purposes. Ah chairman of the .Bank of, Now Zealand, I took up this question with our High Commissioner, and ho assured mc that ho was leaving no stono unturned to bring about a settlement. . The excuse of the British authorities is that the adjustment is most difficult and laborious to make. I fail to sec why it should be. It is all a matter of accountancy. ■ • ■ "Up to tho date of my departure for England, and for some time prior thereto, there was considerable activity on tho London Stock Exchange, stocks in shipping, rubber, and oil.. companies , commanding the most -' attention. '• Tho rapid advance in '•■• P. and 0. deferred slock was most sensational, sales having been effected at over i!G73 towards the middle of Novembez. As niight bo expected, after the embargo that was placed oh the flotation of i;ew companies during the war, the market is now being flooded with new issues, and these appear to, be readily absorbed by an over-confiding public, assisted by astute underwriters." . • ••

Permanent link to this item
Hononga pūmau ki tēnei tūemi

https://paperspast.natlib.govt.nz/newspapers/DOM19200107.2.11

Bibliographic details
Ngā taipitopito pukapuka

Dominion, Volume 13, Issue 87, 7 January 1920, Page 3

Word count
Tapeke kupu
622

THE MONEY MARKET Dominion, Volume 13, Issue 87, 7 January 1920, Page 3

THE MONEY MARKET Dominion, Volume 13, Issue 87, 7 January 1920, Page 3

Help

Log in or create a Papers Past website account

Use your Papers Past website account to correct newspaper text.

By creating and using this account you agree to our terms of use.

Log in with RealMe®

If you’ve used a RealMe login somewhere else, you can use it here too. If you don’t already have a username and password, just click Log in and you can choose to create one.


Log in again to continue your work

Your session has expired.

Log in again with RealMe®


Alert