THE DOMINION'S PROSPERITY

Auckland Star, Volume XXXIX, Issue 114, 13 May 1908, Page 8

THE DOMINION'S PROSPERITY

DUXEDIN MERCHANTS ADVISE CAUTION. (By Telegraph.—Proas Association.) DUNEDIN, this day. Inquiries made locally respecting the Dominion's prosperity show that tht> financial situation has been carefully watched by merchants and others engaged in commercial pursuits for months past. The note sounded in business circles generally is one of caution, but without anything approaching panic. Business in Otajjo and Southland is on a sound basis, but the opinion is generally held that sooner or later the reflex of the American crisis will be felt to a greater or less extent in the Dominion. The high values obtaining in most lin?s, however, preclude speculative buying, and business is largely confined to immediate demands. It is considered that so long as caution continues to be dominant in the commercial world there is no reason for undue pessimism. WELLINGTON BUILDING OVERDONE. (By Teiegrnph.-Own Correspondent.) WELLINGTON, this day. During the last two or three months building operations in the suburbs havt been gradually slackening until that branch of the trade may now be regarded as exceedingly quiet. Many archiI tects report slack times, too, which in- | dicates that matters are not likely to speedily improve. Of the factors which have contributed to this and to the consequent lack of employment for carpen- ■ ters' and builders' labourers, a tightness of the money market is most prominent. Until a month ago money could be obtained on mortgage at 54 per cent on.the larger properties, but 6 per cent is now the ruling minimum, while lenders are very cautiously examining the margin of security and insisting upon very safe term?. The large city undertakings do not appear to be sharing in the prevailing depression, for the city is developing, and business premises must be modernised and enlarged. Some interesting statements in regard to timber prices J were made to -a "Times" reporter by a j leading merchant. He was asked, in j order to show how the present state of the timber market compared with years ago, what would be the value of a house which cost £500 at the beginning of I that period. His reply at once was:— "£575 to £600," the higher figures being due entirely to the rise in material | since that date. Owing to the reduced demand sawmillers were now found actively canvassing for custom, whereas a year ago it was the merchant and builders who ran after the sawmiller.