THE MONEY MARKET

Hokitika Guardian, 21 October 1927, Page 4

THE MONEY MARKET

MOHTCi A(iKS. In the .annual review, Messrs Pyne, Gould, Guinness, Cliristolmreli, state with respect to mortgages tlmt j " there appears to have been .sufficient money available to meet reasonable <lo~ marnls. The State Advances Office, no doubt, has to some extent supplied a want, hut except at the early part of i lie tear the demand for mortgage money on good security has not been great, for the most part mortgagors have already obtained on mortgage as much, or more than they are entitled to upon their land. Very lew mortgages have been repaid, hut the main reason why the mortgage business lias been dull for some time is that very little land has been changing hands. Where it has changed hands it has been very often at the instance of the: mortgagee, in which ease the mortgagee has left the greater portion of hisi money still upon mortgage on the pro-' pertv. and it is thought that this state, of affairs must prevail for some time. 1 Even if the price of laud comes down still further, investors in land will not become plentiful until those now on the land have made sufficient in justify! them in launching out further. During the past few years the amount bor- 1 rowed by local bodies must have run into many millions. Previously much of this money eame from outside, but now it is apparently furnished from sources which previously supplied mortgage requirements. The money availaide for investment upon mortgages in N'ew Zealand is practically all what may be termed as local money, but the iinouut available is undoubtedly very argely affected by the attractiveness >r otherwise of other trust investnents, such as local body loans.