THE Wairarapa Age MORNING DAILY. FRIDAY, FEBRUARY 14, 1913. FINANCE AND COMMERCE.

Wairarapa Age, Volume XXV, Issue 10713, 14 February 1913, Page 4

THE Wairarapa Age MORNING DAILY. FRIDAY, FEBRUARY 14, 1913. FINANCE AND COMMERCE.

Many important public works in the Dominion are at present hung up for want of money and many of our public .bodies are awaiting anxiously the result of the visit to Loudon of cur Minister of Finance. ,T.t will be a long time before we may look to securing cheap loan money from London. Our hope is that we may get sufficient at a reasonable rate. Money is as plentiful as ever but the channels for its outlet are increasing. Reviewing Finance and Commerce for 1912 the London Times says the past year has been marked by very groat activity in industry and commerce, in spite of two serious strikes and the Balkan War; by a further advance in tlie pricey of many important commodities; by a practical admission on the part of most borrowers, including several of the overseas .Dominions, that it is useless to offer the investor less than 4 per cent; and by the continued issue on the part of the American railroads and other borrowers of short-dated "notes" in the hope that when they mature it will be possible to obtain better terms for a "long" bond than can be secured now. 1 liese phenomena are the principal causes of the good demand for money wliich has existed during the year. The Bank of England rate, which at the beginning, of tho year was 4 per cent., was not reduced to 3 per cent, until May 9. and it remained at that level for barely four months, having been raised to 4 per cent, on August 29. In 1911 the "official minimum" remained at 3 per cent, for over six months, and did not rise above 4 per cent. In 1912 the Bank was compelled to raise its rate to 5 »er rent, on October 17, and at present there seems no probability of a. reduction for some weeks to come. The advance to 5 per cent, was due largely to tho situation created in the overloaded stock markets of Berlin and Vienna by tho unexpected course of the Balkan War, which led to big liquidation. The load was thus thrown on Paris, London, and New York. The last-named city boro the #;train better than was expected, probably because there was only a. moderate speculation for the rise Wall-street, owing to tho hesitating attitude which is usual in a Presidental election year. The effects of war on business have not been considerable so far; but the end is not vet, and the economic results of hostilities 011 any considerable scale usually show themselves sonic little time after tho fighting is over. Possibly in 1913 trade may begin to show signs of slackening somewhat sooner

than the indications at present visible would suggest. The procure for money ;it various places abroad, and ti;o i re<(uotit. endeavours to borrow money here are iiigus that local commitments are in excels of the moans of iinancing thorn. The war has greutlv cheeked Stock Exchange business. Trade anci commerce have been, as already remarked, very active in 11)12, and in spite of tho very .serious injury to proiits cau-sed by the coal -strike and the port of London strike, and other unfavourable influences, the year must have boon profitable for both capital labour. There have been few periods during which businwss, as a- wh-oio has been more active than in IUIL\