The Money Market.

Manawatu Standard, Volume IX, Issue 120, 25 April 1885, Page 2

The Money Market.

Messrs Charles Pownail and Co., scriveners, report : — Applications for money during the proceeding month very limited, and a consequent accumulation of capital for mortgage invest* inent. Bates of interest nominally remain unaltered at 6£ to 7£ per cent for ordinary amounts. Sums running into large figures upon undoubted securities have, however, been quoted as low as 6 per cent., and had it not been for the war scare considerable transactions would have reached final negotiations at that figure. The effect upon the money market if war is declared is difficult to foresee. A declaration of war has hitherto represented a heavy fall m the English funds with a comparative rise m the value of money. These calculations are now, however, no longer obtainable. The plethora of unemployed capital so long existing has alieady made that commodity a drug upon the English market. With further contracted trade it must surely increase, and is worth noting that when consols lately fell 4 per cent, upou the war alarm m London, the discount market at 2£ per cent, remained and continues unaltered. From this large overplus the Colonies are therefore more likely to be fully supplied, and we are inclined to hazard the opinion, therefore, that though the first outbreak of hostilities may cause. a rise m present rates it will not be m excess, and most probably only temporary.