THE MONEY MARKET.

Taranaki Daily News, Volume LVI, Issue 2, 3 June 1913, Page 5

THE MONEY MARKET.

"SHORTENING SAIL."

"FINANCIAL STRINGENCY.

By Cable—Press Association —Copyright,

London-, June 1. The Financial Times states that there is a tacit agreement amongst leading underwriters to abstain from further business until the glut -of new securities is absorbed. The joint stock banks in one or two cases have been taking steps to stem the tide of fresh borrowing by public authorities. If a respite is given, the natural elasticity of the stock markets will soon re-assert itself.

The Daily Mail says that there is' •scarcely an underwriting house in the city that has not had seriously to consider the question of declining fresh obligations. The market for shorter issues is almost equally Congested and relief cannot be expected without , a slowing down of trade, the widespread prosperity of which is the root of the scarcity of money. SOUTH AUSTRALIA'S PROSPECTS. Adelaide, June 2. The Premier of South Australia, Mr. Peake, has cabled from London that the money market is very hard for colonial borrowing, being disturbed by the large foreign loans. Owing to the rate of interest demanded it would be impossible to float a loan on advantageous terms at present.