VERY CHEAP MONEY.
It has been known in certain circles for somo time past that the Edinburgh and Glasgow banks had ttgrecd that tho moinont hid arrived when they should decide on lowering their minimum rate for deposits from 1J por cont — at which it has t>tood for many years past — to 1 por cont. Tho difliculty in tho way was the strenuous opposition of tho three banks io tho north. But a decision has, it now appoars, boon definitely come to. It was ridiculous to go on giving tho higher rate for money, no small part of which was being used in London at Jt oven per conb por annum. Tho question now is in what way customers will bo compensated ? Tho viow seoms to bo that tho rates charged on overdrafts, locil trade bills, and accommodation bills will also bo r.duced. That, of course. will take a good deal of tho " quill off tho gingorbread," but how much it would bo diflicult to say. There is one matcer suggested by this new dopartu<o that is worthy of consideration — namely, tho probability that a largo amount of money which Scottish depositors woro content to take 1^ por cont in tho hope of a hpoedy roturn to a more remunerative level will bo withhrawn and transferred to an account with tho Post Oflico Savings Bank. That tho latter deparmont will wolcomo such increased patronage, in view of tho present high price of Consols in which those fresh funds would have to bo invested, may well bo doubted. Another point is the eftect which such a tranforance, if mado on a largo scale, would have on the markofe price of Consols. The natural tendency would bo to raise it still further, which would certainly causo tho Post Oftice Savings Banks additional embarrassment, and possibly hasten the timo when tho authorities would bo compelled to lower tho rate of interest allowed on tho money lodged with tho Department.
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North Otago Times, Volume XXXVII, Issue 8162, 17 April 1895, Page 1
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326VERY CHEAP MONEY. North Otago Times, Volume XXXVII, Issue 8162, 17 April 1895, Page 1
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