The Stratford Evening Post WITH WHICH IS INCORPORATED THE EGMONT SETTLER FRIDAY, SEPTEMBER 1, 1916. THE MONEY MARKET.

Stratford Evening Post, Volume XXXI, Issue 29, 1 September 1916, Page 4

The Stratford Evening Post WITH WHICH IS INCORPORATED THE EGMONT SETTLER FRIDAY, SEPTEMBER 1, 1916. THE MONEY MARKET.

The Commercial and Financial writer in the Wellington Evening Post says the effects of the flotation of the War Loan of £8,000,000 in the Dominion, Or rather of the subscription to if, approximately £9,500,000, are not expected to be seen at the moment upon the amount of loanable money at the disposal of the banks and other lending institutions. Of course, the transfer of so large a sum for a substantial proportion of it) from private account to Government account, must be apparent sooner or later. A large amount of the money will re-circulato in the Dominion itself, thus finding it way hack into the banks in the form of fixed deposits and current accounts. Still, there will be a temporary displacement of private funds, and the tendency may be for some difficulty in obtaining accommodation. It is understood that all the banks have subscribed to'the loan in equal proportions according to their assets and liabilities, but there is this difference between the Australian and New Zealand institutions: that the former have subscribed in addition to the three Commonwealth loans. The Post writer also points out that banks in this country are now practically compelled to conserve their gold, and to issue notes, upon which taxation is collected, their other taxation has been materially increased, and their lending rates are practically half per cent, lower than in Australia. How long, with the diversion of a large 'amount of money otherwise loanable to the public diverted to the New Zealand War Loan, the banks will continue their present lending rates is a matter of conjecture. With tin 1 ' high prices being returned for butter and cheese, and the prospective remunerative returns from wool during the coming season, and the internal expenditure of a large amount of the loan money, there ought to be a considerable amount of money available! for general purposes. At any rate, u i shortage should be experienced.