THE MONEY MARKET.

Taranaki Daily News, Volume LV, Issue 185, 23 December 1912, Page 5

THE MONEY MARKET.

A HOPEFUL VIEW. By Telegraph—Press Association. Auckland, Saturday. Mr. 'Beiiuchanip, chairman of directors of the Bank of New Zealand, in an interview said that whilst recognising financial stingency in the Dominion, the position was entirely different to 1008, when the stringency was caused by a sudden and unexpected drop in value of the primary product wool. To-day wool is wortli approximately sixpence a pound more than in 1908, representing £4,000,000 additional value. The present money tightness was felt mostly by the Government, public bodies, and those speculating heavily in land. Among the latter were many who had bitten off more than they could financially masticate, and they were without a prospect of relief until the finances of the Dominion were in. a healthier condition. Personally he anticipated that Mr. Allen's mission to London would he successful in arranging a renewal of loans totalling £15,000,000 maturing in the near future, and also in getting an additional £2,000,000 or £2,500,000 of new money. There was every reason to believe the present money tightness would vanish in the next six to nine months, and no doubt as a result the Government would be able to assist local bodies to a coaitderable extent. But he did not believe these bodies should be encouraged to undertake so many public works as under the previous (iovernment. The small margin between imports and exports shows that there is still a large amount of private extravagance, and it would greatly assist the financial equilibrium if a little more thrift were practised.