FINANCIAL SITUATION.

Taranaki Daily News, 13 June 1921, Page 5

FINANCIAL SITUATION.

MONEY REMAINS TIGHT. An opinion that the financial position was slightly easier and that possibly the peak of the crisis was passed, was referred the other day to a prominent Auckland business man by the Herald, “I do not think so,” he replied. “I da not think the position will ease until 1922. My reason is this: The banks will be called on to finance the butter and cheese factories from the opening of the dairy season until the produce is on the London market. This accommodation probably will be required until November or December. For the hist five or six years this money wae found by the Imperial Government. At present we know that the banks are ‘up against it’ in trying to finance commercial people with heavily over-loaded stocks. The outlook is therefore not encouraging. I think the tightest tima in the money market will be during Sep-* tember, October, November, and Decern* ber.” Any temporary easing of the position.' which might have been noticeable, ha said, was due to the liquidation of stocks. A large quantity of stocks wera now being sold below cost. Such a movement was merely transitory, and had hardly any effect upon the general situation, which was governed by thq banking institutions.