SHORT DATED DEBENTURES

Kaipara and Waitemata Echo, 8 May 1914, Page 4

SHORT DATED DEBENTURES

IN the course of an address the other night Mr Massey spoke with regard to the recent tightness of the money market, caused by the Balkan war and the abnormal demand for money from different borrowing countries which wanted to go in for a policy of development. The consequence, he said, was that the old law of supply and demand applied, even to the money market. The demand for money exceeded the supply, and the price of money went up. " That was the position when we came into power." the Prime Minister continued. " Sir Joseph Ward told you that we had borrowed £12,000,000 since we had taken office, Perhaps we have. lam not going to dispute the statement, but he did not tell you that £8,000,000 was borrowed, or required to bo borrowed, to pay for the indebtedness that he left us. We were left with £3,000,000 to find to pay off the indebtedness that falls due during the present year. That was the effect of the policy of short-dated debentures."