TOO MUCH MONEY.

Taranaki Daily News, Volume LI, Issue 255, 21 October 1908, Page 4

TOO MUCH MONEY.

NOT IX CIHCULAXIOX. London, August 28. There is something like a deluge of money in the banks throughout the country at the present time. Chcip money and dull business are among t.ie ■features of the day. Money has rarely been more abundant or quoted at lowe'r rates, and thi s i u itself is a sure sign of the general inactivity 01 trade throughout the country. "lint," said a leading City banker, "this cheapness and abundance of ■money works out its own salvation. When trade is .bad and money is a dro" in the market the Stock Kxchango 1" active, and the reverse holds.

"The colters of the banks began to fill after Xovember 7th last, and the si renin of money has continued since. On that date the.Hank rate was raised ■to 7 per cent., and the attractive power ■of such a rate made the inflow greater than the ontllow, in spite of the enormous withdrawals about that time. "Oold was attracted from such comparatively poor countries as Xorwav and Sweden, and the Hank came through •with Hying colours. Deposits have since kept moulding up. It is dillicult to hazard a guess as to when the ebb tide across the Hank counters will begin." The amount of money lying at the banks just u ow is inordinately great. The niontldy statements of the twelve great banking companies showed total deposits, etc., at the end of last month ol_ C415,280,7!1!1, all .increase of £17,217,271) over the same time last year, Cash in hand and at the. Hank of Eng■laiid showed an increase in the same time of .-Cs,<i3u,lo], and the cash at' call and notice an increase of £0 2*l- - ' ' The total of new issues for the current year has been the largest for some 'tune. ,C1.'!2,(i02,170. as against CIOU,d28,»!)8 for the corresponding period of '11)07. Hut the reception of these lias been so bad—with a few notable exceptions, such as the Chinese Rails-Hint new issues have almost come to an cud. The public simply will not subscribe, even for loans guaranteed by great Governments, and underwriters'have had to take up most of the issues.