FORCING UP THE RATE OF INTEREST.

Ashburton Guardian, Volume xxix, Issue 7543, 20 July 1908, Page 4

FORCING UP THE RATE OF INTEREST.

During the debate on the Financial Statement, Mr Laurenson stated with regard to the recent difficulty in obtaining money at a moderate rate of interest, that it was "One of the mos cold-blooded and determined attempte on the part of the capitalist class to bring about financial panic in New Zealand." The phenomenal drop in the price of wool, following the excessive rise in prices, was, he'said, taken advantage of to boom up the price of money in Christchurch to a most inordinate extent. Within four weeks it had jumped from 5 to 6 and 6i per i cent, and he remembered an instance fin connection with a £40,000 loan negotiated by people who could offer j security for double the amount of the loan, but they could not get » cent until the borrowed it for six years afc 6 per cent. There was another case of a farmer, who wanted an advance of £2000 against 4500 head of sheep, and was told by his agent that hg.could fix it up easily, yet the agent had subsequently to report that he could not secure the money. If this was going to happen whenever a slight drop took place in any of our articles of export, the Government ought to extend the functions of the Advances to Settlers Department, and make advances ap.ainst produce when they had giltedged securities. If this were done, the Government would confer an inestimable boon upon the producing classes. ■ 'j