GOOD THING FOR DOMINION.

Taranaki Daily News, 17 June 1922, Page 4

GOOD THING FOR DOMINION.

AID TO BETTER TRADE. HOPES FOR REDUCTION HERE. By Telegraph.—Press Association. Wellington, Last Night. Referring to the reduction in the bank rate of interest, Air. Massey said that needless to say he was very pleased to see it. “I think it is a very fine thing for the whole of the Dominions,” he said, “and under the existing circumstances more particularly perhaps for New Zealand, because it means money is plentiful in England. It is gradually getting cheaper, and as money ‘becomes more plentiful so will trade improve, along with the purchasing power of the people, who are our best customers.” Mr. Massey added: “I hope the time will soon come when we shall find a re-< duction in the rate of interest in this country. Local bodies, farmers and business men want cheap money, and the sooneY it comes along the better.” I • The reduction of the bank rate has been consistent this year. The reduction to 34 per cent, follows soon after a welcome drop a few weeks ago to 4, which was preceded in February by a reduction to When the February announcement was made the rate was 5%, at which it had stood since November, last year. The first sharp rise began in 1914, when the rate jumped from 44 in January to 8 in July, and thence to 10 on August 1, just before the outbreak of the European War. The year 1919 found the rate down to 6, but in 1920 it rose to 7. In 1921 it slowly moved from 6| to 6, to 54, and the year closed at 5. The rate was at a higher average level throughout 1920 than in any previous year since the Act of 1844, though there have been occasions when a much higher rate was in force for shorter periods. As regards low rates, it may be interesting to recall that on April 1,1909, the rate wa» reduced from 3 per cent, to per cent., remaining at the latter figure for over six months.