Money Market

Feilding Star, Volume VII, Issue 67, 14 November 1885, Page 3

Money Market

Messrs CSiarles Pownall and Co., mortgage agents Wellington report the demand for capital on mortgage investment has been very limited dur- . ing the last month, while the supply of money, has considerably- increased. Tha rate of interest has consequently declined fully one-half, and is now 7 pet cent; f pr moderate, and 6£ ta 6 per cent, for large sums. . Special arrangements for extra large amounts . might possibly, be entertained *t ££ , . bat there is no probability of any further fall below these' quotations, Already symptoms of a, strong 1 reaction > in. the Home market, have occurred, with a. sudden commercial rise of f pen ©ent— namely, from li to-.2 per «ent. .The, continuous fall in our chief exports has given rise to a general unfavorable : impression that overproduction is the cause, and that any reaction is therefore improbable. With this irrational conclusion we must beg to differ, and Our opinion is based upon tine 1 ! solid ground of very long personal • experience. . Since 1842, .w.^en stations in Australia were deserted and sheep were sold for 6d per head, nearly every^decade we have had' somewhat similar transactions 1 where, like the present one, there was apparently little prospect of recovery. . There are now certain prpspectsof China being opened out ■with a network of railways, developing a4rade with 400 millions of people. Egypt," with a new loan of 10 millions and Central Africa, are following in the same course, and before, there-. fore, we lend, ourselves to the folly of 'hopeless despair we 'should recollect that the continents of the. world are at present but barely half supplied and that the age of improvements is now moving on with rapid strides.