ERA OF CHEAP MONEY ESSENTIAL

Dominion, Volume 28, Issue 81, 29 December 1934, Page 12

ERA OF CHEAP MONEY ESSENTIAL

Recovery From Depression

NEW ZEALAND FOLLOWS ENGLAND I By Telegraph.—Press Association. Auckland, December 28. Concerning the cabled summary of a survey of financial and economic conditions made by the Chancellor of the British Exchequer, Mr. Neville Chamberlain, published on Monday last, the Minister of Finance, Rt. Hon. J. G. Coates, stated in Auckland to-day that past experience had shown that an era of cheap money was one of the essentials of recovery from trade depression. He heartily agreed with that aspect of policy being followed in Great Britain, which could not fail to benefit New Zealand directly insofar as loan conversions were concerned, and indirectly insofar as it was instrumental in promoting trade recovery. Mr. Coates pointed out that a similar policy was being consistently followed by tiie Government in New Zealand, and as a result Government and local body securities had been established at lower rates of interest, and bank rates and deposit rates generally had been brought down to a low level, “There remains, however, one large field in which a comprehensive stabilisation of finance has not yet been achieved, and this is the field of mortgage finance,” continued Mr. Coates. "However, this is a matter which is to receive attention when the session of Parliament is resumed in February, and it is anticipated far-reaching results will follow from the passing of legislation for the establishment of a mortgage corporation and the rehabilitation of farmers’ finance.”