THE MONEY MARKET.

Taranaki Daily News, Volume LII, Issue 69, 17 April 1909, Page 6

THE MONEY MARKET.

INTERESTING AND HOPEFUL VIEW BY MR Id. BEAUCHAMP. Auckland, April 1-1. Some interesting views were expressed by Mr 11. Beauchanip, chairman of directors of the Bank of Aew Zealand, to-day, concerning the stringency in the money market. The interview was the outcome of the published reports of discussions in Wellington by the New Zealand Chambers of Commerce Conference and the Prime Minister's statements in re-

Air Jleauchamp said that lie did not believe Unit there would be any real relief until there was a marked improve- . went in the trade of the United Kingdom, which, after all, was the principal market for the major portion of our products. " True,'' said Air Beauchanip, "there has been an appreciable advance ill wool, but there are several other produets, such as hemp, gum, and frozen mutton, which-are exceedingly low. At the same tinw there is one satisfactory feature, and that is the slight decline that has occurred in the values of stocks in public companies in this country. Jf you refer to the quotations issued by the Stock .Exchanges of the Dominion from day to day, you will lind that .there are scarcely any stoci.s ill public companies that will yeihl an investor anything beyond 5 per cent. This shows that there must be a large .number of people who are not in severe linancial si raits.

" I am of opinion," continued Mr Bcaucliamp, " that the class chiclly suffering from the money stringency comprises those who have indulged in over-specula-tion in land, and who are now experiencing a difficulty in raising the necessary money to meet instalments as they full due. Too much land, especially country land, was bought at boom prices on the assumption that the produce of Xew Zealand was going to command extreme rates indefinitely. In other words, no room was left for the drop experienced in the last year or two. Personally, 1 am hopeful that financial equilibrium will be restored by reducing imports, and by the practice of economy in public and in private expenditure. This is undoiibteillv already taking place, and the benefit 'ought to Iw felt in the next twelve months."

Air Beauchamp stated, in reply to a question, that he did not think that there was much chance of the bank rates being raised in the near future, lie thought that it would be admitted that the banks had done more limn their duty to the public during the past twelve months bv so substantially- increasing overdrafts' and discounts, lie bad seen exception taken to the policy of I lie banks in keeping large funds in London. In that connection, however, lie would point out that the banks would not have been in a position to assist their clic-its, as thev had done if inese funds in London had not iK'en readily available for transfer to the Dominion.

In ri'plv to another question, Air lleaiichanip stated that he favoured the borrowing of money by the Government as far as |iossible outside the Dominion, recognising the fact that this country was too young to carry out the so-called self-reliant policy.-