MONEY IN MELBOURNE.

New Zealand Times, Volume XXIX, Issue 4132, 18 June 1874, Page 3

MONEY IN MELBOURNE.

The publication of the quarterly bank returns shows that large sums of money are being advanced by those institutions, and the presumption is that these advances arc being invested in large land purchases in Riverina, and in this Colony. That the territorial revenue in New South Wales has boon largely augmented by Victorian investments in land is generally known, but it is not so generally understood, that large areas of agricultural land in this Colony are being bought _ from needy selectors by the largo lauded proprietors, and there is no doubt that of the £1,481,000 advanced hy the banks, in addition to their deposits of £14,287,000, a largo portion has boon invested in this manner. The increased value of money, by reason of these enormous advances, must naturally have a depressing effect upon legitimate trade. The banks will be more fastidious in the paper they discount, and will restrict accommodation to the utmost possible limit, for there is tangible security in laud mortgages which is wanting in trade bills. Two years ago the deposits in the Banks wore larger than the advances by those institutions, money was cheap, and the effect was seen in the establishment of many now industries. So elastic, indeed, did the Victorian money market appear, that it was believed in some quarters that wo should in future he able to carry out our largo Government works, 'without going to England as borrowers. The idea, however, is effectually dispelled by the returns just published, which show that the Banks are not only loaning the money of their customers, but are advancing their own capital. It is certainly not to the mining interest that the cash of the Banks is finding its way, for those institutions arc as rapidly as possible withdrawing aid from mining enterprise, and to this fact may possibly bo traced the depression of this iupustry.—Leader.