THE MONEY MARKET.

Taranaki Daily News, 1 July 1920, Page 3

THE MONEY MARKET.

(From the "Trade Review.") The local banks are still-amply supplied with funds, but there are indica,tionn tliat a reduction in the supply of money in New Zealand is coming and consequently an appreciation in value. As we remarked in last Issue, the cessation of the Imperial commandeer of our produce will place the financing of gathering and marketing the produce on the producer, who will require assistance from the banks. The extent .of this assistance depends largely upon the facilities for marketing—the supply of shipping and tlie capability of the English market to absorb the produce. At present the prospects, more especially for meat, are not over bright. Another fact that is working to reduce the money supply is the rapid growth of importation. For the past five months our imports readied the high total of .£15.i)fi2,133, or only £418,825 less than the total of our exports, which is far I too small a margin.- The Government | has a loan of .£2,000,000 on the marI ket now at 5 per cent.., subject to in- ! come tax. and a larger loan will be required before the end of the yeiir. The Government is fortunate in being able to obtain money as cheap as it has, as the British Government is paying fij per cent, on Treasury bills, and Government bonds are selling in London at prices which return the iu- | vestor 0% per cent, to cent. The 1 local supply of money is ample at prej sent, but the'reduction wiil probably j come in the last quarter of tlie J" Mr- | when calls for assistance are always 'lifAviaak. | v