TIGHTENING MONEY MARKET.
EFFECT ON COST OF LIVING.
AUSTRALIANS' SPENDING HABIT.
Mr Justice. Heydon, of the New
-outh Walee Industrial Court, in bis inquiry into the cost of living last week, expressed intereetiDg views on r,he tightness of the money market and its effect upon the shortage of bouses.
Hβ suggested that the shortage of houses niitjht, bo due to the shortage of money. Po3sibly people were get sing mch a high rate for their money in other directions that, they wpre not disposal to build. Tbo spending habit of the Australian appeared to be pun ishing him,
Mr Conniogton (tvbo is appearing for some of the unions and union secretaries) said that there seemed to have been an artificial tightening of
money, Mr Justice Heydon: Perhaps the banks have not forgotten the years 1892 and 1893, when suddenly confidence collapsed. There may be a boom on now, or the be ginning of it, unci it is necessary to prevent that. The banks' business is to lend money, and if they can lend it safely I can bardly understand any artificial mo hive preventing them from doing it,
Mr Oonnington : Looking at the thing fairly and equarely, one might think that was bo; but what if the banker finds it more to hi 3 interest to keep his money from investing, with the idea, of getting high rates ?
Mi , Justice Heydon : Then, too, the banks had lost the power of issuing notes, this having been taken over for the purpose of meeting the Common wealth's necessary expenses on public matters requiring money. That would contract the amount of money available by the banks for lending. Then they looked for deposits to lend, and there has been keen competition for deposits. Building societies are coming in again, I am sorry to see. Building societies, by borrowing money, brought on the crisis of 1912.
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TIGHTENING MONEY MARKET., Akaroa Mail and Banks Peninsula Advertiser, Volume LXXI, Issue 4349, 14 November 1913
TIGHTENING MONEY MARKET. Akaroa Mail and Banks Peninsula Advertiser, Volume LXXI, Issue 4349, 14 November 1913
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