The Money Market.

Manawatu Standard, Volume 3, Issue 54, 27 January 1883, Page 2

The Money Market.

Money is exceedingly tight. Great caation is still exercised by lenders, but the general tone of the money market ; is dpcidedly healthy, i Messrs Charles Pownall and Co,, scriveners, report a considerable increase m the demand for money during the last month, with an insufficient supply of capital, applying only to small sums offering tor investment. For applications under £3000 the rate-of interest remains unchanged — namely, 1\ to 9 per cent, on an increasing scale for the lesser amount, but m excess of this quotation, and on broad acres only; Business transactions for a considerable amount Have been negotiated as low as 7 per cent. Our opinion, however, based upon the following grounds, is ; I strongly m favor of cheaper monoy soon | prevailing from a more plentiful supply of outside capital : — The new loan subscriptions were for more than one-half the amount required, at an average of i about 4 per cenfc Nothing can more clearly define. the existence of strong faith having now been estabished m the Home market as to the vast resources of this great country. When, therefore, present high quotations ot the value of capital for mortgage investment obtain circulation there, we may naturally expect that a verj considerable supp^'of it will be furnished for that purpose. The prospect of very good returns for our wool and grain must likewise strongly tend to disestablish the present existing money pressure, which banking influence is alone responsible for.