INTEREST RATES

Otago Witness, Issue 4033, 30 June 1931, Page 49

INTEREST RATES

MOVEMENT FOR REDUCTION CHRISTCHURCH, June 24. After considerable discussion, the Canterbury Chamber of Commerce, at its quarterly meeting, decided to make representations to the Government for reduction of the interest rates as follows: — 1. That no further subscriptions be accepted for an internal loan at 5J per cent, repayable in 1937. 2. That interest on any further loans which the Government decides to raise in New Zealand within the next two years be not more than 5 per cent, per annum. 3. That similar arrangements be made in regard to those Government departments which take moneys from the public on deposit, or for investment. 4. That the Local Government Loans Board be asked to reduce the maximum rate of interest payable on new loans floated by any local authority in New Zealand in similar degree. PRESSURE ON THE GOVERNMENT. WELLINGTON, June 26. Considerable pressure is being brought to bear upon the Government for bringing about a revision of interest rates in order to encourage the freer use of money so as to assist productive industry. Representatives of financial interests have already conferred with the Prime Minister (Mr G. W. Forbes) with a view, to securing a lead from the Government, the opinion being held that a .move by the State is a first essential towards the desired end. Mr Forbes said to-night that the question was under consideration by the Government, but he was not in a position to make any definite announcement. A further conference with all financial interests is expected to take place shortly, but Mr Forbes is reticent as to the fixture.