The Stratford Evening Post WITH WHICH IS INCORPORATED THE EGMONT SETTLER. TUESDAY, AUGUST 12, 1913. THE MONEY MARKET.

Stratford Evening Post, Volume XXXVI, Issue 83, 12 August 1913, Page 4

The Stratford Evening Post WITH WHICH IS INCORPORATED THE EGMONT SETTLER. TUESDAY, AUGUST 12, 1913. THE MONEY MARKET.

Though we have heard quite a lot about the stringency of the money market in London, it is at least cheering to note that a spirit of optimism prevails, and that investment is particularly active with full confidence in the future. That the rate of interest is high is perfectly true, but this may quite easily be accounted .for by the fact that there perhaps was never before such a great demand for money

i for industrial enterprise and for development on many lines. A leading banker speaking of the tightness of the money supply, stated the other day that the labor organisations report that for the first time in many years, the number of unemployed amongst the skilled workers is only one per cent, of the whole and this fact alone indicates how very prosperous Britain is at the present time and how great the demand for money must be during this period of general industrial prosperity. He added that, at certain periods, the percentage of unemployed had been as high as seven per cent. But now that it has decreased to one in a hundred everything points to a period of great industrial and commercial prosperity throughout the United Kingdom, and this of course means prosperity to the colonies supplying England with the necessities of life. Ho went on to sav that there was a

great stringency owing to the immense demand upon capital in both the commercial and industrial sections of the country. Trade is good all over and there is also an understanding that there are going to he a great many borrowers in the market in the near future. In its issue of July 2nd. the “Statist” estimates the savings of England available for investment in securities at about £220.000,000 a year and adds:—“lnasmuch as wo have already subscribed on balance for over £1 10.000,000 new securities exclujsivo of those issued to repay previous

loans, so far this year there is still a sum of about t 50,000,000 which can he subscribed during the later months

of the year without the new capital

resources of this country being exceeded. It is true that, at the pre-

sent time, the rate of wages is high and expenditures upon necessaries and luxuries are large, hut it must be remembered that the productive power] of the country is unusually great, that all our workmen are in lull employ-

ment of high efficiency, that the outturn of our mills and factories has never been equalled, and our ships are earning money fastei/ than ever Oof ore, and that our bankers, financiers : and investors are enjoying unusually . great incomes. Nor are .there, am serious strikes to fritter away the great income of the nation. At the present moment, fortunately, there are very few labor troubles. Jhus, tho output of wealth in this country is much greater than it has ever been and the accumulation of capital in the current year, in one way or another, will greatly exceed all previous totals. Sir Joseph Ward speaks in hopeful strain also of his recent observations in London and remarks that though tho Balkan trouble has hardened money so far as rates are concerned, it has not diminished the supply, so that it is only a matter of time when large sums will be available at lower rates. Immense sums are needed in all young countries for development purposes, and there can bo no talk of lessening the world’s activities. One authority on the great problem of the world’s supply of money points out truly that to-day the luxuries of our fathers are essential necessaries for us. There is not beef enough, nor bread enough, nor milk enough, nor good wholesome food enough produced to-day to supply the frugal wants of the white races. The yellow races are learning the white man’s taste .for beef and white bread. The American people are now greater importers of food products thar exporters. Canada is not yet abk to feed herself and has to got butter and mutton from New Zealand. The food supply of the earth is running behind the demands of the growing and more enlightened populations of to-day. The standard of living has risen and is rising in every country where the sun shines and waters flow. The white man’s civilisation is fast transforming the habits and customs of the dusky Indian, the Senagambiar. and the yellow hordes of Asia. There are no more vast virgin prairies to he transformed into teeming food areas, Canada is now exploiting the lasi great fertile prairie region of tinworld. Russia and China and Japan will need all the food Siberia can produce, Henceforth the production' of food and textiles from the farm will cost more arid move, arid will demand greater skill and, greater intelligence and greater capital than ever before. All the real statesmanship of the world should focus the thought and interest of the world’s brightest minds ■on improved methods of farm production and improved methods for the collection and distribution of food products. New Zealand would do well to heed the warning and advice.