THE MONEY MARKET.

Wairarapa Age, Volume XXXI, Issue 3048, 19 November 1908, Page 5

THE MONEY MARKET.

The New Zealand Trade Review, issued yesterday afternoon, contains 'he following remarks upon the money market:—"No substantial alteration of the financial position is ye,t in view, nor, indeed, i" it, in our opinion, to be expected for some little time. 'A very brief review of the circumstances is alone needed to reach this conclusion. The chief factors responsible for the existing stringency are the fallingoff in the financial . volume of our exports, together with a heavy increase in the imports. The full force of these is to be seen in the statistics of trade to September 30th last, and they reveal a gap or chasm of some five millions to be bridged over. The bridge or viaduct that will accomplish this is not to be constructed in a month or two. We have entered on a new produce year, and the earliest of the season's productions are iust beginning to come to market, namely, dairy goods and wool. "The dairy trade is the brightest factor in the problem before the Dominion, but it will only go a short way towards bridging the gap. What, then, are the prospects in respect of wool, meat, 'hemp, kauri gu.n, etc.? In regard to any of our exports outside of dairy produce, even when they* come to market, are we warranted in looking for any t substantial impruvemept upon the poor results of last year? We fear not.

"Turning then to the excessive volume of imports which to the 30t'h September shows not the least abatement, what relief are we to look for in this direction? We fully anticipate a substantial shrinkage in the volume of trade on this side, but the effect to be hoped for from this source cannot, in our judgment, be expected to develop in less than a twelvemonth. "Another important factor in the position is the value of land. It has for a long time been recognised by financiers that land in New Zealand, both rural and urban, has attained unreasonable and inflated prices. Under present conditions a shrinkage in such valuations is looked for, and a lower ! level will certainly be adopted by all prudent financiers in making advances on landed security. This will press upon those needing to raise loans of this character, or those who are, even now, being pressed to redeem such advances. Some assistance is looked for through the raising of the £1,250,000 loan, by the Government, outside the Dominion. The relief, obtained in this way will, however, be most of a negative character in that the money will not be drawn from local resources. "Reviewing thus the features of the market as they present themselves to us, we are discern any reason for anticipating an early relief from the present tension, though we have no doubt that in due process of time the Domsnion will right, itself and will even reap some profit from the experiences through which it is now passing.. To hold out false hopes would only tend to induce a relaxation'of the caution and vigilance which are needed to bring an end to the prevailing'stringency.'*■.'-,