The Daily News MONDAY, DECEMBER 5, 1904. THE MONEY MARKET.

Taranaki Daily News, Volume XLVI, Issue 284, 5 December 1904, Page 2

The Daily News MONDAY, DECEMBER 5, 1904. THE MONEY MARKET.

The announcement that the Government has. obtained a loan of a million upon, what must be considered aa 'favourable terms will be received with satisfaction, as it goes to show that the stringency of the money market at Home is passing away. At the time when the last mail left London the improved financial position was a prominent topic with tha city papers, which ware discussing future prospects in most hopeful terms. The Bank of England returns have, of late, shown figures which have not been equalled by anything since 1897, the reserve, the stocks of gold, and the ratio of reserve to liabilities having been unusually high. Capital has been accumulating! to the extent, as one authority points out, of oetwcen £5,000,000 and £6,000,000 every month, and it has been very difficult to employ money profitably. The slackness of' trade uccounts in some decree for the accumulation of capital, and further than that the amount of new stock issues in 1904 was smaller than it has been for years. For nine months of Ihisycai some £89,000,000 had been offered, against £98,000,000 fat the saino period' last year,, and £i;J7,OUO,OOU in 1902. In 1901 the amount lais ad in the same period was £l-17, 000,000. It must therefore be apparent from these decreased demands that' lange amouuts must be awaiting investment. Upon the Stock Exchange, we learn, things are very buoyant although there is nothing in the nature of a boom. The (increased activity has 1 been above the normal, and each fortnightly account shows- on improvement on its predecessor in genuine investment business. The stupor and timidity of of the past few years' are passing away. Less difficulty is reported in securing money to finance important undertakings, and financial groups arc willing to sink their money in development work i n connection with various enterprises. " These are all signs' of the times," says one financial critic. " Where a financial house has found 1 difficulty, and has perhaps been months at work to raise, say, a Jquarter of a million for development work during 'the past two years, within the last few weeks there is no doubt that several big sohemes have been financed after only a few days' negotiation. The same thing if) -seen in the case of recent new issues. The Capetown loan was a surprising success, the lists being closed days in advance of the advertised .time." Other issues are referred to by the above writer who considers that if anything of a reasonable nature is put before the investor he is ready to take it. The satisfactory state of thingsi prevailing jn the Home market will verv soon be reflected in the colonic-' wfcre there has' for sometime past txxv a decided '•'.tightness' 1 in the financial chest. Signs there, however, arc that this is going lo , „ relaxed shortly. l* e J w L n v dn m* the Government demand f Ol . money locally, while the n i K „ price of wool is calculated to bring' ,„ the cotary an unexpected furr.lus of from £600,000 to £BOO,OOO Z?♦ seems quite dear that ocal Unan cial conditions will ao on be in ,™ pathy with the better. state, Xl poXrtmi. inthe^it '---