THE MONEY MARKET.

Manawatu Herald, Volume XXXV, Issue 1082, 1 April 1913, Page 2

THE MONEY MARKET.

The New Zealand Trade Review says: “The supply of money is still far from plentiful, and there is not much indication of easier times coming lor the present. The volume of our exports is keeping up well, and prices are satisfactory generally, but our imports show little,sign of any reduction. We are getting near the end of the quarter, and the returns will be looked for with interest for a definite showing as to the position. The remarks of the president of the Wellington Chamber of Commerce on the balance , of trade have aroused a considerable amount of discussion on this subject recently. We will not enter on any criticism here, as we understand that that gentleman’s statements were not reported quite correctly, but there are one or two facts we would emphasise that must be taken into consideration when dealing with this subject. Firstly, it must be remembered that our exports and imports are merely our income and expenditure, as our loans come in the

form ot goods, aud are so excluded in imports ; also a proportion of our imports are capital expenditure requited for opening up fresh country, which will ultimately increase our exports. As to what our actual outside obligations are it is very hard to gauge these. The interest on our national debt and on loans ! o local bodies amounts to nearly but over 24 millions of these loans were raised in the Dominion, so that the interest under these two headings, which has to be sent out of the country, would not amount to more than ,£2,900,000. Outside capital invested in various enterprises here is au uncertain quantity, aud is estimated by some authorities to be reaping nearly a million in interest or dividends, so that our total outside interest obligations are probably from 3)4 to 4 millions. Unless our exports provide enough to meet this interest as well as paying for our imports, the effect will be felt in a tightening of the local money market, but it does not necessarily affect our national stability. Prior to 1885, practically every year showed an excess of imports, but since then there has only been an excess of imports on one or two occasions, and the average excess of exports tor the past 26 years has been roughly 2)4 millions per annum. While it is desirable that our exports should pavfor our imports and interest obligations, that is not absolutely necessary in a young country like this that requires capital to open up the laud. However, we still consider there is room for some restriction ot our imports, especially as regards luxuries, aud every effort should be put forth to increase our ex- ; ports.”