CHEAP MONEY IN NEW ZEALAND

Taihape Daily Times, 16 October 1918, Page 6

CHEAP MONEY IN NEW ZEALAND

REVISE BV *£& % E®AUGHAMP. The condition, of the money market was commented on on 'Saturday by Mr. Harold Beauchamp, chairman of the Bank of New Zealand, who is vtaiting Auckland. He remarked that aa g. result of the good prices received for our produce money was 1 very plentiful, and it Was ‘cheaper to-day in New Zealand than in any other part of the world. He instanced the face that whereas New Zealand had beea raising war loans at 41 per cent., free of income tax, Canada now was floating a loan at 5i per cent., also free of taxation. The Imperial Government, he added, had been selling short-dated Treasury bills in New York at a price which gave investors 6 per cent., bn? similar bills sold in London yielded a return of only 3J per cent. The low price paid in England, he said, prowably was accounted for by a desire to induce visitors to take up the longer currency war bonds, but the cause o* the higher price paid in America had not been explained. Mr. Beauchamp said that money in New Zealand was now obtainable on mortgage at from to 6 per cent. This, however, wa» subject to taxation, which in the case of persons of large incomes meant a reduction of the net return to the ex-, tent of 7s 6d in the pound.