The Feilding Star. Oroua & Kiwitea Counties Gazette. Publsihed Daily. SATURDAY APRIL 20, 1895. THE MONEY MARKET.

Feilding Star, Volume XVI, Issue 246, 20 April 1895, Page 2

The Feilding Star. Oroua & Kiwitea Counties Gazette. Publsihed Daily. SATURDAY APRIL 20, 1895. THE MONEY MARKET.

o Theke does not appear to be any very great activity in the money market at present and the expected improvement anticipated a few weeks ago has not yet appeared. The New Zealand Trade Eeview of the 18th instant says although the actual instances of reduction in the price of money are not important, the tendency is still doivnward ; but it appears to be a case of one waiting for the other, and thinks the Government might certaiuly assist the movement by lowering the rates paid by the Post Office Savings Bank, and other public institutions receiving money. While the Savings Bank is giving 3£ and 4 per cent for money at call, and the Banks are only giving the same rates for twelve mouths deposits, it is difficult for the latter to further lower their rates. These, again, influence the Building Companies which are paying 5 per cent for twelve months deposits though they have shown a disposition to decline new business at more than 4 A per cent, because as their lending rates are down to 5£ to 6| per cent they must needs bring down their borrowing rates to leave a fair margin. The same remark applies to the Banks whose lending rates are also tending downwards. It is stated tbat loans under the Advances to Settlers Act are flowing out somewhat freely. That may be so, but there still exists in tbis part of the country a feeling of irritation at wbat the applicants for loans consider the unnecessary length of time which was allowed to elapse before replies were given to tbem, and at the wide difference between the sum granted by the department and that which theintending borrowers required However it is perhaps too much to expect that the new machinery necessitated by the Act could work quite smoothly at the outset.