FALL OF INTEREST OF MONEY. [From the Hobart Town Courier, Feb. 5.]

New Zealand Spectator and Cook's Strait Guardian, Volume IX, Issue 800, 2 April 1853, Page 4

FALL OF INTEREST OF MONEY. [From the Hobart Town Courier, Feb. 5.]

Those were good old .days in the colony when men sold ram for assignments of land, and for t keg of spirits acquired real estate — when they who had a hundred pounds to lend thought it a Christian and lenient action if they took thirty, a just and equitable thing to ask fifty, and by no means out of the way if they required eighty per cent, upon the transaction. These times ore not so very long passed away as that they are ( not fresh in the remembrance of many of our" readers. However, we have changed all that now. Among the extraordinary effects of the gold discover jes will be presently numbered the salutary fact, that it will annihilate vrbat may be termed prejudicial usury in this as well as in the neighbouring colonits. No doubt those who have no adequate and business-like security to offer will be obliged still to pay highly. This must ever be the case. But the time is rapidly impending when a man having landed or household property mortgaged at 8, 10, or 15 percent, will be able to transfer his title deeds to a willing lender at 4 per cent., when there will be a search and a competition for new investments. A plethora of unemployed capital is no longer confined to England, but is beginning to obtain both at Sydney and Melbourne. The effect in Van Diemen's Land of this anxiety for safe employment of funds has already been felt by the decided increase in value here, within the last eighteen months, of all kinds of real property ; and, joined with high agricultural and pastoral produce prices, this state of things will greatly increase. * Lage sums in specie have been, and are weekly being, transmitted from England to these colonies, to be used in the purchase of gold. No doubt the Banks and private parties who are ■ using these sovereigns will make ample profits by their transactions. But the gold sellers or diggers cannot lay out in foreign imported goods all the money coming to them — a very large and increasing quantity of it must remain in these countries ; and the raoie so as the owners can only hope there to invest it at tolerable interest. Nor is this all. It appears certain that at least three new Banks are coming from England to Sydney, representing from two to five millions sterling — to say nothing of the still larger influx of banking competitors which may be certainly anticipated at Melbourne. The obvious consequence of all this must be the cheapness of money, and the consequent rednction of the interest to. a rate ultimately very little exceeding that in the markets of England herself. We think this rapidly coming itate of things matter for sincere congratulation. No man having real estate has any business now to pay more than 5 per cent, upon mortgage. If he does so, his lawyer is) either negligent of bis interests, or tacitly favourable to those of the mortgagee. But things will grow more prominent presently. The struggle for money employment will, so to speak, be louder by-and-by, and then even he who runs may read. But the landed proprietor who has, for the last twelve years at least, been a grumbling animal by compassionate privilege, will say, Oh ! it's all very well ; no doubt I don't pay as much interest as I did, but then look to the price of labour ! We reply,, do not be afraid — things cannot last over another winter as they now are at Melbourne. No end of people will be here by-and-by. The Council will be wise enough to spend some Land Funds in importing a round number of the unhappy tentoccupiers into this country, where they and theirs will be fed, clothed, and we trust educated. Steam — the Tasmania to wit, and other large steamers — will presently ply between the ports, and equalise the labour market. Therefore we say, fear not. With your interest on encumbered property thus reduced, with your prices mrfde remunerating, with the clog of the convict system taken off your halting foot, and with hope

and energy newly-born and braced, we anticipate a prosperous future for Tasmania. At present the disadvantages of the gold discovery are only seen. Its beneficial effects will presently appear. Nor is there one of them which will be hailed with more heartfelt" satisfaction than the discomfiture of the old money monopolists, who will have their fang teeth drawn, and may retire " with all their blushing honours thick upon them."