MONEY MARKET

Rotorua Morning Post, Volume 1, Issue 28, 25 September 1931, Page 3

MONEY MARKET

(Speciai to the "Post.")

n.z. will benefit EFFECT ON PRICE LEVELS OF BRITISH ABANDONMENT OF GOLD STANDARD PRIME MINISTER'S VIEWS

WELLINGTON, Thursday. New Zealand is closely watehing the money market at Home at present, and although the raising of fresh credits is not contemplated, the Prime Minister (the Rt. Hon. G. W. Forbes) stated to-night that the stabilisation of the markets following the suspension by Great Britain of the gold standard was of considerable interest to the Dominion. Asked for his impression of the

action? taken by the British Coalition Cabinet in suspending the Gold Standard Act, Mr. Forbes was disinclined to comment at such an early stage. He confined himself to the statement that the fact that there would be more money available in England as a result of the stoppage of the drain of gold and credits to the Continent and America, must be of benefit to New Zealand, as well as to the other Dominions which depended upon the London market." "Is there an immediate flotation in prospect?" the Prime Minister was asked. "No," he replied. "There will be no loan before the normal time. We generally go on the London money market about May and it is not our policy to borrow twice in one year." Mr. Forbes was asked whether he expected that a rise in the price of New Zealand's exported primary pro-

ducts would follow the suspension ojl the gold standard. The Prime Minister replied that it had already been predicted that the cost of foodstuffs in England would rise. Should the stabilisaUon, which all looked for take place, there seemed little doubt that the Dominion would benefit.