THE MONEY MARKET.

Taranaki Daily News, 31 July 1917, Page 7

THE MONEY MARKET.

VAST SUMS AVAILABLE {FOB I INVESTMEOT, It is no exaggeration to say that a ■sum of something like half a million pounds ifl available for deposit in Christchurch at call if some enterprising institution could afford to offer say, three per cent, to the depositors. It is no secret to say that the City Council which accepts money on call at 3 per cent, as an alternative to creating a large overdraft, has a very large sum on deposit, and a very much larger sum awaiting vacancies. This glut of ready money must be partly attributable to •the heavy local payments for the Dominion's produce purchased by the Imperial Government. lUsually a very largo part of the produce would be paid for in Loudon and the bulk of the money be invested there. War conditions have not only increased the payments to a fabulous amount, wit have created a great surplus for investment. A reporter who endeavored to gauge the situation ascertained that there was an astounding amount of money awaiting investment for short periods, while very few securities were offering. The causes of his holding up of money was variously ascribed to:—'

<A feeling of unrest pending financial legislation. Properties not changing hands. Tho high coat of building. Uncertainty of employment. The calling up of small holders. The awaiting for the next war loan. A general absence of speculation due to the times.

It was put forward as a theory by ione financial observer tshat the small people were conserving their money, •»wia§ to the uncertainty of .what they might be called upon to face during the next year or so People who had the taoney would not lend it for any length of time, and this must be attributed to the expectation of higher rates for money after the war, due to the increasing industrial and other activity.