THE MONEY MARKET

Taihape Daily Times, 22 March 1919, Page 5

THE MONEY MARKET

The producing season is now v.\. advanced ,and a large part of the produce has been realised on by sale to the Imperial Government. Up to date five millions has been paid out on this season's butter and cheese, eight millions on wool, and a further large sum on meat # Payments by the .Imperial Supplies Department on all classes of produce from January 22 total over ten millions. The bank returns for the December quarter showed an excess of deposits of nearly two millions, and with this further heavy accretion of funds, besides the realisation of other classes of produce, the banks are fully. supplied with plenty of money, available for all ordinary requirements. In many cases the Government has been acquiring properties for returned soldiers and paying off existing mortgages before maturity, and this has been done to an extent to cause some discomfort to building companies and others who lend money largely on mortgage. The result of this is that these institutions find themselves with a surplus of funds on hand for whicn there is not sufficient outlet except tying it up for a long time in Avar loans.

Another loan is to be raised locally by the Government, but its flotation has been postponed, though we understand some subscriptions are being accepted now, and there should be no difficulty in raising the money without any disturbance of the money market— "JW.Z. Trade Review."