Money Market

Feilding Star, Volume VIII, Issue 52, 12 October 1886, Page 3

Money Market

' Messra Charles Pownall and Co., mortgage agents, report a complete stagnation in the money markets for the last month, demand and supply being equally contracted, both evidently awaitißg the tide of events. The Banks have by their offer of 6 per cent on deposits for 12 months, secured most of the superfluous capital offering f«r mortgage investment, while on the other hand mortgagees are net willing to submit to the increased rates of interest* and tho large j margin now demanded, which in their present position is both impracticable and ruinous to accept. > The continuous rise in the wool market should circulate a large amount of floating' capital from the coming crop were it not for a strong fealing of distrust exhibited as to its reality and perma-. nence. No doubt upon such a rapid and unexpected advance some reaction will occur, but beyond that' w k e have no doubt that fair and rumunerative prices will rule for some time to come. Money is now worth 1\ per cent, a small amount of trust funds only being obtainable at 7 per cent on securities marked AAL City properties in good position show an advance of fully 25 per cent in value, and are likely to increase in the same ratio during the next 12 months. *