THE MONEY MARKET.

Shannon News, 12 September 1922, Page 3

THE MONEY MARKET.

INTEREST RATES EASING

LARGE margins insisted on

■Remarks P u J lis 4 h ® d shoW fed that the °. c mone > market in Auckland 1S im P rovin S , . , . , of view, and trom a borrower s point „ that gradually we are retu. rn^^°. n per cent as a fair current rau. ‘ , liries terest on private security. Inqu \ made in Wellington support ti.

view. Although it would he difficult at the moment to get loans on private security at less than 7 per cent, there have been some transactions on particularly good securities at 6£ per cent. One important phase of the lending business which is likely to he permanent is that lenders will require larger margins than formerly. Authorities consulted in Wellington declare that State Advances and other Government departments which lend money are only doing so on a 55 basis, which means that borrowers have to put up half the cash. The lasfj few years’ experience has dictated similar precautions to private lenders, who, in consequence of sharp lessons in fluctuating prices of produce and consequent depreciation of securities, are inclined to follow the lead of the State departments, and also demand that a borrower shall provide 50 per cent of cash involved in any transaction on which he requires financial Assistance.—Auckland Star.