THE MONEY MARKET.

Taranaki Daily News, Volume LII, Issue 43, 16 March 1909, Page 4

THE MONEY MARKET.

The New Zealand Trade lleview and Price Current, issued on Wednesday,contains the following article on the money market: " Though no substantial improvement can be chronicled so far, we believe that the forces are at work which will, in due time, .bring about easier conditions iu the money market of Xew Zealand. The class of borrower who is feeling the present pressure most severely is one who requires to raise money on the security of landed estate, as the needs of importers and producers are recognised as having the lirst claim on the consideration of the banks. The factors to which we look to induce an alleviation of the present conditions are, as wo have said before, increase in the value of exports and decrease in the volume of imports. There is reason to believe that many fail to realise the extent to which the recent extravagant scale of importation is responsible for the present stringency, but we have little doubt that all importers fully appreciate the importance of this factor. The inconvenience arising from excessive stocks is now accentuated by slackened demand and the need of caution, and we are satisfied that for the next twelve months the indents of importers will be on a reduced scale, as they have been for some months back. Happily the producing season, which is now well advanced, has been one of the best ever experienced, and in both quality and quantity the output of our most important products will reach a high level. In some cases prices also promise well, while in others they threaten to be somewhat poor. There is, however, every reason to anticipate that, on the whole, the value of our exports for the year will show a substantial improvement upon that for IDO7-S. These movements, it will he seen, will not eventuate in a month or two, and it is as well that it should lie recognised that the twelve month before us will be one that will call for patience, caution, and moderation, and every effort that can be put forth to remedy the errors of the recent past. It is pleasing to see that financial institutions generally are acting with moderation and in a way to produce a steadying ell'ect. and are not making matters worse by raising rales. It is also stated, as by authority, that the Premier has no intention of increasing Hie Post Office Saving Hank deposit rates. It is. no doubt, realised that an upward movement: Inane one section of the financial circle would at once be followed by the rest, with the result (hat none would profit by an increase of deposits.