FINANCIAL OUTLOOK

Hokitika Guardian, 5 April 1921, Page 3

FINANCIAL OUTLOOK

MORATORIUM ON DEPOSITS

GERMANY AND REPAYMENTS

WELLINGTON, April 4

‘'There lias been practically n?> appreciable change in the financial situation duringfThe past few days, nor is there likely to be, in the opinion of those qualified to judge, until matters become more straightened out between the Allies and Germany,” stated a well-known Wellington financier in conversation with a “Times” representative yesterday.

‘‘lt is generally thought that if Germany can lie brought to recognise her

liabilities under the Treaty of Versailles, her doing so will be followed immediately by a restoration of confidence throughout the civilised world. “A good effect upon the local market has already been produced by the passing "of the Act extending the moratorium to deposits. This measure lias relieved the minds of many of those who control public bodies and public companies, which during the past few years have been in the habit of taking large amounts of- money tit call or at short dates. These people, prior to the passing of the Act, bad been informed by the bankers that they could not look to tlie banks to find money for tiie repayment of such deposits; and it is obvious, therefore, that if there had been anything like a big demand for the repayment of deposits it would have been followed by financial embarvuss-1 incut to tin extent almost undrea nt of. £500,000 AT (i;{ PER CENT.

“No definite advice (lie added) lias been received in Wellington yet to the actual underwriting of the loan in the London market on behalf of the Auckland Corporation; but, from a Press telegram which came t" bend recently, il would appeal that there is cvcrv prospect of this operation i cing carried through successfully. If s" the Auckland Corporation is to be congratulated upon getting so large a sum of money—namely. £500,000 on sim.- excellent terms as lit per cent at pm, less only the cost of uuderw. .ting. This would probably bring the actual amount of the interest payable n tosped of the loan up to, sav, ir} per cent.