The Feilding Star, Oroua & Kiwitea Counties Gazette. Published Daily. MONDAY, DECEMBER 16, 1895. CHEAP MONEY.

Feilding Star, Volume XVII, Issue 143, 16 December 1895, Page 2

The Feilding Star, Oroua & Kiwitea Counties Gazette. Published Daily. MONDAY, DECEMBER 16, 1895. CHEAP MONEY.

■+ Those who have studied the times and the aspect of commercial affairs during the past few months will have observed that there is a tendency of greater or lesser strength on the part of those who have the control of the finances of the colonies to loosen their hold on tied-up capital by lowering the rates of interest paid to depositors, and thus encouraging the diversion of money into other channels. As an evidence of the movetnent, wa quote the following, from the Post of Saturday : — " We learn that the Australian Banks in New Zealand, which it may be mentioned some time ago led the way in lowering the deposit rates, have now substantially reduced their advance rates all round, and that the rate for good mercantile discounts is now 5 per cent. This must mean the profitable employment of more capital in legitimate trade and enterprise and corresponding expansion of business with the employment of additional labour." This, with the immense sum of money which will be put in circulation by the sale of this season's wool, should go far to remove the depression which has for so long hung like a funeral pall over the colony.