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Hokitika Guardian, 17 January 1929, Page 4

That then 1 is a huge accumulation of money in New Zealand is disclosed by tlic latest banking returns, the most conspicuous feature ol which is the total of twenty-nine and a-half millions on fixed deposits. This is nearly five millions more than a year previously, and ten millions more than at the end of 1924. In addition, there are twentytwo millions of free deposits, an increase of three-quarters of a million on the figure for the end of 1927. Thus fixed deposits have grown out of all proportion to free deposits, and while these returns give gratifying proof of the prosperity of the country, they also show that confidence is lacking. It is well-known says an Auckland paper, that there has been a heavy demand for gilt-edged securities. Investors are shy to put money into the ordinary channels of trade and industry. Everything possible should he done to restore confidence, and, as was previously said, the Government should make it dear that it intends to keep its election promise of loss interference with industry. f i he hanks have encouiaged persons with money to lend on fixed deposit. The situation now does not warrant so much encouragement, and if at the same time the hanks reduced their rates on advances trade would In> stimulated anti less fixed money would he offered. With so much money about, it is undesirable that the banks .should charge so much for loans. It is suggested that the Government should use some of this surplus to meet its loan conversion jliabilities. 'I he objection to this policy is that it would use money loir Government purposes that should really flowthrough the ordinary channels of industry and commerce. It would be. better for New Zealand to obtain loan money, or most of it, from England, where there is an abundant supply for this purpose, and use own savings in private development of our estate. 'Restoration of confidence should make this money flow.