The Feilding Star, Oroua & Kiwitea Counties Gazette. Published Daily. WEDNESDAY, NOVEMBER 6, 1895. THE MONEY MARKET.

Feilding Star, Volume XVII, Issue 110, 6 November 1895, Page 2

The Feilding Star, Oroua & Kiwitea Counties Gazette. Published Daily. WEDNESDAY, NOVEMBER 6, 1895. THE MONEY MARKET.

In spite of the large withdrawals of deposits, remarks the New Zealand j Trade Review, the money market continues decidedly easy, tbe banks have plenty of money available, and are quite , ready to take up any business of a sound character. Their rates are not altered in any particular, but we should not be surprised to see a further reduction in deposit rates if the Government were to lower their borrowing terms in the Post Office Savings Bank and other money dealing departments. In tbe open market money is in good supply and available for advance on freehold security at 5 to 5\ per cent for high class I securities, and 6 and 7 per cent for 1 medium and small snms on ordinarily good security. The demand at these rates is good, but not over keen. In face of these facts, with the banks only offering from 2 to 3 per cent for six months' deposits, the maintenance of a 4 per cent rate at call at the Savings Bank is quite | inexcusable. The Government is practically raising a local loan at a price beyond the market value of money, and the amount thus raised since January Ist last is £373,000. The Colonial Treasurer has already intimated when speaking in tbe House the rates of interest would probably be reduced shortly in Government Departments receiving money on deposit, and it i« high time that was done. The Banking Beturns for third quarter of 1895 show tbe ordinary characteristics of the September quarter in which, as a rale, customers draw upon the banks either by an increase of advances or by withdrawal of deposits. On the present occasion the Increase of advances is unimportant, but the decrease pf deposits is substantiaU Tbe total of toe latter tuw d««

creased in the quarter £819,889, and in the year jE753,214. Since tbe reduction in the rates by the Australasian banks nearly a year ago, fixed deposits have been -withdrawn to the extent of £1,018, 886, of which £776,000 was taken from the three Australian banks, and £242,000 from tbe other three institutions. The balk ot hbeae withdrawals have, very probably, . found investment in other directions, such as mortgages, or in shares in various enterprises, while the increased amount lying in the open accounts looks as though some of it was still seeking employment. The forcing out of these funds has no doubt operated beneficially in reducing the lending rates of money, and encouraging enterprise.