Manawatu Herald. TUESDAY, JUNE 29, 1920. THE MONEY MARKET.

Manawatu Herald, Volume XLII, Issue 2145, 29 June 1920, Page 2

Manawatu Herald. TUESDAY, JUNE 29, 1920. THE MONEY MARKET.

THE local hanks are still amply suppled with funds, hut there are indications that a reduction in the supply of money in New Zealand is coming, and consequently an appreciation in value, says the Trade Review. As we remarked in last issue, the cessation of the Imperial commandeer of our produce will place the financing of gathering and marketing the produce on (he producer, who will require assistance from the hanks. The extent of this assistance depends largely upon the facilities for marketing —the supply of shipping anil the capability of the English market to-absorb the produce. At present the prospects, more especially for meat, are not over bright. Another fact that is working to reduce the money supply is the rapid growth of importation. For the past five months our imports reached the high total of £18,9(12,133, or only £118,825 less than the total of our exports, whcli is far too small a margin. The Government has a loan of £2,000,000 on the market now at 5 per cent., subject to income tax, and a larger loan will be required before the end of the year. The Government is fortunate in being'able to obtain money as cheap as it has, as the British Government is paying (5A per cent, on Treasury hills, and Government bonds are selling in London at prices which return the investor GA per cent, to 7A per cent. The local supply of money is ample at present, but the reduction will probably come in the last quarter of the year, when calls for assistance are always heaviest.