TIGHT MONEY.

Taranaki Daily News, Volume LII, Issue 58, 2 April 1909, Page 2

TIGHT MONEY.

Mr. J. Russell French, general manager of the Bank of .Vew South Wales, Sydney, and president of the Institute "of 'Hankers of Si'K South Wales, in an address last week at the annual .meeting of the institute, speaking of baukiug, said the transactions of the year had becu favorable though quiet. They had la tidy had to lay a fairly tight hand on the outgo of money. After the bank crisis and the drought ia 1303, there was a remarkable growth, of deposits. These deposits were the money turned out by good harvests and good prices. 'The growth in deposits had stimulated the

growth of advances in a very rcinaikiil)l« way, and for the last two or three years advances Jiuit been exceeding their ■proportion to 111.■ deposits. This went on until mow I he demand for money had exceeded llu. >tiji]i|.v, and prudcal bunker* hud to i,ul. a check on outgo. "This year',, wheat operations may redress til,: Malice to a large extent," said Mr. Krctn-li. "lint it is ei|ual|y possible that lor some time a brake w'ill he. kept on. Never in the history of Australia have "e had such a low deposit rate as dur- '"<;: Uie lar,t lifteen years. Advance rates have been low in proportion. Hut this cheap money is alwavs liable 10 loin-about a spirit of speculation; and speculation is not viewed as consistent with sound banking." So a reasonable ch"ck had been put on tile outgo of money, continued the speaker. If that did not prove enough, there was a I wan '!'«• i-'le to fall back on. A comparatively small increase in the rate ha,l the '•'Heel of decreasing deposits and causim, »'"'«\v l<> he. tra-a.ferred from current , account to iixed de|Kisil,

THE HAIiBOU LOAN. Tin; arrival of the chairman and treasurer of the New Plymouth Harbor Hoard iu Loudon yesterday directs attention to the important mission upon vluch they are engaged, namely, the aishig of the £300,001) loan for the iquidation of the old loan falling due u a few -weeks' time and for the iuiu'ovement of the harbor. 11 seems as if heir visit were fortunately timed, for he London money market is easier now ban, it has been for months, Uliis is videnced by tlie recent marked rise n wool and the increase in the price d' Consols—a reliable financial baroneter. Again, there is reason to believe hat the .delegates' mission will be eoniderably helped by the splendid impresion created in Britain by the action if New Zealand in connection with her ■oluutary gift of a warship, ihia imiression, of course, is purely a sentinental one, but sentiment counts even villi financiers. Just the other day a •epreseiila-tivc of an important London louse, referring to New Zealand's action n regard to the Navy and its effects ipon the people of England, expressed die opinion that from a purely materiilistic, commercial view point, New Zeaand would benelit immensely, and in 10 way more than in regard to outai-.i-ng tlie necessary capital for the de--elopmeul of tile Dominion's resources. Oven before its spontaneous oiler, New lealaud occupied a foremost position in he minds of investors. This statement s borne out to some extent by Mr. S, I. Nathan, of Auckland, who returned o the Dominion .from London by the •oriiithic. " 1 think," Jlr. Nathan said o an interviewer, "all the New Zealand oans did remarkably well at Home. I'hcre was at the time, too, a strong denand for money, and one would have .bought that such loans as those of he Auckland. Wangnniii, and W'eslport larbor Hoards would not have attractd the attention they did. Canada was Hinting millions for Clovernmeiit, nitiinlpalities. and railways at the same ime. Nevertheless, New Zealand was u strong favor. This country is very avorably regarded at Home. There ins an impression abroad that Canada fas borrowing just a little too much. Vherover J went 1 found New Zeaaml well spoken of, and 1 do not now cl'er oulv to the financial world." Jlr. witliau 'was asked if there was any iiimey available for industrial underakings in New Zealand, and in reply lie aid: "1 fear the reports of labor's (longs and of the labor legislation here nd its probable eousouuences are much xaggorated. They are seat Home in u extremely abbreviated form, and unortuuatcly the antidote does not alHiys go with them. At the same time cannot say that they actually do preudicially influence British money ilowng our' way for industrial uudertakngs." Let us hope that ilessrs. Conic tt and King will be successful in di•erting a portion of the stream Taralakiward. With the gilt-edged security bey can oiler, ajnl the circumstances eing as favorable as they are, there is lot 'wanting justification for the belief hat their mission, will be attended with uccess.