THE MONEY MARKET.

Wairarapa Age, Volume XXXII, Issue 3135, 11 March 1909, Page 6

THE MONEY MARKET.

The "New Zealand Trade Review" issued yesterday afternoon contains the following article oh the money market:— "Though no substantial improvement can be chronicled so far, we believe that the forces are at work which will, in due time, bring about easier conditions in the money market of New Zealand. The class of borrower who is feeling the present pressure most severely is the one who requires to raise money on the security of landed estate, as the needs of importers and pi'oducers are recognised as having the first claim on the consideration of the banks. The factors to which we look to induce an alleviation of present conditions are, as we have said before, increase in the value of exports and decrease in the volume of imports. There is reason to believe that many fail to realise the extent to which the recent extravagant scale of importation is responsible for the present stringency, but we have little doubt that all importers fully appreciate the importance of this factor. The inconvenience arising from excessive stocks is now accentuated by slackened demand and the need of caution, and we are satisfied that for the next twelvemonth the indents of importers will be on a reduced scale, as they have been for some little back. Happily the producing season, which is now well advanced, has been one of the best ever experienced, and in both quality and quantity the output of our most important nrcducts will have reached a high level. In some cases prices also promise well, while in others they threaten to be somewhat poor. There is, however every reason to anticipate that, on the whole, the value of our exports for the year will show a substantial improvement upon that for 1907-8. These movements, it will be seen, will not eventuate in a mouth or two, and it is as well that it should be recognised that the twelvemonth before us will be one that will call for patience, caution, and moderation and every effort that can be put forth to remedy the errors of the recent past. It is pleasing to see that fnancial institutions generally are acting with moderation and in a way to produce a steadying effect, and not making matters worse by raising rates. It is also stated, as by authority, that the Premier has no intention of increasing Post Office Saving Bank deposit rates. It is, no doubt, realised that an upward movement by any one section of the financial circle would at once be followed by the rest, with the result that none would profit by an increase df deposits."