THE MONEP MARKET

Hokitika Guardian, 5 August 1930, Page 7

THE MONEP MARKET

HOPEFUL BRITISH VIEW. The latest monthly review of the Westminister Bank contains an informative article on the monetary outlook. The present low level of rates-is* the concomitant of widespread trade depression, signalised by the decline in, commodity prices and a contraction in industrial activity. It is a major cyclical movement, and, as in the past, will be followed by recovery, The writer ventures the opinion {.hat on this occasion the. process of recuperation will be “considerably more speedy” than, say, that which followed the post-war slump. Meanwhile cheaper money should perform its proper function of tiding industry over a difficult period. During the summer and autumn relatively low rates seem likely to continue, and by that time it should be known to what extent wholesale prieqs are becoming stabilised, and how far industry has progressed along the road to recovery. The Westminister Bank expects 1931 to be “a year of progressive economic recovery, with a moderate hardening,of money rates.” It ifl to be hoped that nothing will happen to upset: these pleasant calculations.