The money Market.

Manawatu Standard, Volume X, Issue 1501, 7 November 1885, Page 2

The money Market.

Messrs Charles Pownall and Co. mortgage agents, report the demand for capitaT on mortgage investment has been very limited during the last month, while the supply of money has considerably ;n---creased. The rate of interest has consequently declined fully one-half, and is now 7 per cent, for moderate, and 6^ to 6 1 per cent, for large sums; Special arrangements for extra large amounts might possibly be entertained at s}, but there is no probability of any further fall below these quotations. Already' symptoms of a strong reaction in*the Home market have occurred, with a sudden commercial rise of f per cent — namely, from 1 £ to 2 per cent. The continuous fall m our chief exports has given rise to a general unfavorable impression that over-production is the cause, and that anj reaction is therefore improbable. With this irrational conclusion we must beg to differ, and our opinion is based upon the solid ground of very long personal • experience. Since 1842, when stations m Australia were deserted and sheep were sold for 6d per head, nearly every decade we have had somewhat similar transactions occurring, where, like the present one, there was apparently little prospect of recovern. There are now certain prospects of China being opened|out with a network of railways, developing a trade with 400 millions of people. Egypt,- with a new loan of 10 millions, and Central Africa, are following m the same course, and before, therefore, we lend ourselves to the folly of hopeless despair we should recollect that "fh'e continents of the world are at present but barely half supplied, and that the age of improvement is now moving on with rapid strides, • :