The Feilding Star, Oroua & Kiwitea Counties Gazette. Published Daily. THURSDAY, MAY 21, 1896. MONEY.

Feilding Star, Volume XVII, Issue 271, 21 May 1896, Page 2

The Feilding Star, Oroua & Kiwitea Counties Gazette. Published Daily. THURSDAY, MAY 21, 1896. MONEY.

. ♦ The New Zealand Review of this month points out that another downward step has been taken in the rates of interest paid by the banks on fixed deposits, the three Australian banks having announced that, from the 4th inst. their rates would be 3 per cent, on sums lodged for 12 months and 1£ per cent, for six months, the intention being, later on, to make a reduction in their lending rates. The National Bank, at the same time, reduced its maximum rate to 3£ per cent., but the Bank of New Zealand has made no change up to the present time. It is understood that the fact of the Post Office Savings Bank giving 3£ per cent on deposits, at call, not exceeding I £200, operates as a deterrent to further ! reduction by the Bank of New Zealand. I Our contemporary does not approve of this, for although it is, no doubt, de sirable that the thrift of the people should be encouraged, further reduc tions in that direction should be stayed, though in New South Wales the maximum rate is being lowered to 3 per cent. The right, however, to deposit at the highest rate the sum of £200 in the rame of each member of a family, opens the door to a class of persons mid a character of transactions for which the savings bank was never intended. Uuder these circumstances it would be better to reduce the maximum entitled to the highest rate of interest to £100. This would reduce the opportunity of abuse, and at the • same time to a certain extent protect other financial institutions. Tbe supply of money continues ample, and it is not easy to find satisfactory investment for it. In some cases real estate of a good class has been acquired as an investment for unproductive funds. This is a good sign, and we trust the demand for ireehold land to bo worked by independent proprietors will in cieasft. Nothing indicates returning confidence in the stability of affairs so surely as this tendency on the part of capital. A writer on the gold output says we may expect that the vast gold production now going on will result in a rise of the general price level, in wa^es, and in . the great relief of the debtor class. Barring the possibility of foolish legislation on banking and currency questions, we are entering on an era of great prosperity, where all business .will sail along triumphantly "on an ever rising tide of gold ;> — a I consummation most devoutly to be < wished.