COIN OP THE REALM.

Auckland Star, Volume XLIII, Issue 73, 25 March 1912, Page 9

COIN OP THE REALM.

IS h SraiNGENGY LIKELY t REASSURING AUCKLAND PREDICTIONS. While a stringency in the money market of New Zealand as a whole has been predicted from some of the ihost iinport;ftnt centres of the Dominion, it is reassuring to know that seversV prominent citizens of Auckland versed in the art of finance consider that this Northern City m likely to fare loss harshly than otiror eitios, evon if such a stringency does .occur. "Oiie of the saving features so far as we are con-cerned," saiid a commercial man this morning in reply to a "Star" reporter, "is tha-t the City Council and suburban local authorities have announced large public works expenditures. This, of course, will add to the circulation of the coin of the realm and cause a greater distribution of weaftb anion*,' the community fit largo." At the same time, it was pointed out ■by others. Now Zealand is likely to parUrinate in the financial reaction which is threatening England on account of the labour troubles there and which is likely to extend to America ius a result of the ■cessation of activities because of tli» presidential- elections. Some of tho bankers stated that a feeling was abroad in recognition of a nectl for caution, and this was having the effect of tightening the money market to an extent." So fat there had been no general rise in the rntca of interest, but private investors had been holding oil", anticipating that such would occur. It was, however, inm-p anticipated than actual, and would probably not be experienced before the middle of tlip year. Evon then it might be staved oIT by a successful disposal of the remainder of the Reason's produce. The excess of hut year's imports over exports was nlso an afforting influence, it wae pointed nut. but in this connection the fact sh.mid not be overlooked that the prohitrinj; of luxuries, such as motor ears, from abroad may have affected the available supply of sparo capital in some measure. Aguin, a de.ii of money whs Kicked up by reason ol largo purehnfru of blocks of suburban land for dispos.il in building sections later on.

Is the money market bein:f nCTeeted by tlie local politk-iil crisis? was a question put to another authority. "There U ii" doubt that this is exercising a halting influence, so to epeak," was thu reply. "but the general belief is that it has liii-i no direct effect whatever." This gentleman said it wn« probable thnt tno Artviinccs to Settlers' and Advances to Workers Departments would not have rs much money available a.-* previously, if a "change of Covernment occurred. Even now the lendinj; departments of the Dominion wore restricting their loan-<, and this would result 'in a greater demand on private capital for mort^.-uf-- 1 and private relief. "Although I believe we arp now on the crest of t!ie wave." the p.-ime gentleman remarked, "I bolieve that trade is r;uit.> sound em} th.-rt any pos.sit.lc f.n.anc-ial strcea will be only of a temporary nature."