THE MONEY MARKET.

Taranaki Daily News, 29 December 1920, Page 4

THE MONEY MARKET.

INCREASED PRODUCTION WANTED. There has been no improvement in the money market since our last report (says the New ZeaJand Trade Review); in fact, the trading balance for November makes the position worse. As shown in our last report, there was an adverse trade balance (i.e., excess of imports over exports) for the first six months of the current year of £1,373,802, and for the subsequent four months of £0,100,019, November imports were £5,091703 and exports £3,393,045, giving a 'further excess of imports of £2,597,758 This makes an adverse trade balance forthe eleven months of £13,072,179 0 f which .-£11,608,377 accrued in the 'last five months. While the position is rendered less 1 serious than it would otherwise have been by the splendid balances accrued during the war period, yet it is one that requires immediate atten. tion. It can' only be rectified by severe curtailment of importation, and increased production to restore the baInnce. The only other methods of settling the trade difference, as stated recently by the chairman of the Bank of New Zealand, are the shipment of gold the raising of loans, and the selling' of securities. These courses are not open to New Zealand at present, except to the extent to which the Bank of New Zealand can realise on its London holdings. So far not very much of our new season's produce has gone forwardand it will be another two or three months before sufficient of this will get Home to improve the situation, and ti 1 then money must remain in somewhat short supply. This position has' resulted in a further alteration of the exchange rates.