REDUCTION IN BANK RATE.

Manawatu Herald, Volume XLIX, Issue 3796, 24 May 1928, Page 2

REDUCTION IN BANK RATE.

ADVOCATED BY CABINET MINISTER. Auckland, May 23. A reduction in bank rate was advocated by the Minister of Health the Hon. J. A. Young, speaking at the opening of the advertising exhibition to-day. “I hope bankers will see the necessity before long for trusting us with loAver rates of interest,” he said. “When they can see their Avay to do that financial conditions Avill be made a little more attractive to the farmer and business man than they are to-day.” The Minister said that loAver rates were justified by the improvement in export trade, the buoyant state of the British investment market and the signs of returning prosperity in the Dominion. “It is gratifying to note that a healthier tone is prevailing in tho community,” he said. “Wien the balance of trade goes against us as it did to an extent of £3,000,000 in 1927 avc are looking for trouble. But when the balance turns in our favour as it has done this year to an extent of £10,000,000 then money is brought into the country for investment.” The Dominion’s credit was reflected in financial operations in London. The New Zealand Government’s last loan of £5,000.000 for development purposes was fully subscribed when- the offices opened for business at 11 a..m. and seven times oversubscribed when the ofliees closed the same day. That pointed to abundance of money in the Old (Country and Avas a magnificent compliment to the Government and people of Ncav Zealand.