Money Market

Feilding Star, Volume VIII, Issue 40, 14 September 1886, Page 3

Money Market

Messrs Charles Pownall and Co., acriveners and mortgage agents, Wellington, report that during the last mouth a larg« demaud for monwy on mortgage investment has arisen, consequent upon bank pressure, with a contracted supply equally consequent upon bank rates of deposit at 6 per cent for 12 months, engrossing a large amount of floating capital. Some considerable sums have, however, been negotiated at from 7 to 7£ per cent, but many more, particularly from the Marlborough district, remain in abeyance, not from auy doubt as to the value ef the securities offered, but from the sudden demand unexpectedly erected. Ca'pital at present is not forthcoming to entertain them. Money is now worth 7£ per cent (minor sums 8) with every probability of a further rise until the bank coffers are full of deposits and the existing outside pressure thus relieved. Ou the other hand, wool, as we predicted, is further rising in value, making a vast difference in the returns to this Colony, aud English capital will surely follow from re-established confidence. We do not expect, therefore, present quotations to be Ions: maintained, looking to the fact that they have been created by ulterior courses detrimental and oppressive alike to the community at large. mm^ am^ tmmm