Manawatu Herald. SATURDAY, DECEMBER 28, 1918. THE MONEY MARKET.

Manawatu Herald, Volume XL, Issue 1920, 28 December 1918, Page 2

Manawatu Herald. SATURDAY, DECEMBER 28, 1918. THE MONEY MARKET.

THERE have been fairly heavy calls on the banks for assistance to dairy factories pending the settlement of the sale of our output of butler and cheese to the Imperial Government, but this sale has now been effected and payments will be coming in from that source very shortly (says the N.Z. Trade Review). The sale of this and next season's outputs assures the dairy farmer a settled and very good income for his produce. Wool and meal producers are also assured of their income for a time, though not

♦for so long. These sales put (he farming community on a very satisfactory basis for the present, and ensure a steady flow of funds. Considerable improvement is promised in the supply of shipping space almost immediately to lift our produce. As there are vast accumulations of all classes of produce awaiting shipment, the value of our exports will keep at a high level for some time to come, and this will bring a steady stream of funds into' the Dominion. We are thus assured of a good supply of funds into the Dominion. But against lids, stocks of imported goods generally are low, and importers will want: to build them up again, but are not likely to be in a hurry to do so until values show a considerable reduction, as they must do in time. It appears, therefore, that our exports will be high, while for a time imports will he kept down to little more than immediate needs, and this should keep the money market in a fairly easy state. The Government wants another £10,000,000 for war purposes, £2,500,000 for public works, and £1,000,000 for land for soldiers, which will, we presume, all have to. be raised locally, but as it

nlso circulates locally to a great extent,-should not upset the market. With the advent of peace considerable changes must be expected, but we do not consider the local money market has much to fear for some time to come, and the big influx of funds from war -prices of our produce puts us in a good position to meet any altered circumstances.