MONEY BAROMETER

Auckland Star, Volume XLIII, Issue 305, 21 December 1912, Page 5

MONEY BAROMETER

STRINGENCY STILL FELT

BUT LIKELY TO VANISH WITHIN COMING YEAR.

MR. H. BEAtJCHAMPS OPINION.

The past year baa been regarded as a time of scarce money, the price of money has risen in the last few mouths, and pessimists talk of still further stringency in the near future. In view o f tbe fact, therefore, that at this time of the year most people are calculating how much of their profit margin can be appropriated for holiday-making purposes, and for the benefit, of the man in the street with whom money is on all occasions a very transitory guest, an interview obtained by a pressman this morning with Mr. llarold LSeauckamp, chairman of directors of the Bank of New Zealand, will be interesting.

In cinswer to the interviewer's inquiry Mr. Beauchamp observed: "Whilst reco"nising that there is a financial stringency in the Dominion, the. position to-day is entirely different to what it was iv 1908. This financial stringency, you will remember, was brought about" by the sudden and unexpected drop in the value, of our principal primary product—wool. Today, on the. other hand, wool is selling at approximately sixpence per pound more than it realised in 190 S. That means we a-re to-day getting something like £4,000.000 mnrr for our wool than we realised in 1908.''

"Tho. financial lightness to-day,' , added Mr. Beauchamp, "U fel*. principally by tbf Hovornmrnt. public bodies, and hr those who have speculated heavily in land. Amongst the last-named I should mention that there are. many who have bitten off more than they ran financially masticate, and there is no '-hanop of them obtaining relief until the finances of the Dominion are in a healthier condition.

"IVrsoually I look forward to a successful mjg.Miin by the Hon. Mr. Allen to the Old Country, and if he be nuccossful in arranging lor tho renewal of loans amounting roughly to £15,000.000. wbicii mature in the i:«»ar future, and succeeds

al?i> in getting an additional £2.000.000 to £2.500.0(10 nt new money, there i> every reason to believe, that the tightness we are foe.ling to-day will vanish within tbe next iix or nine months.

" Unquestionably under the Ward ("iovenuncnt," continued the chairman of the Bank of N'nv Zealand, " public bodies were largp.ly encouraged to rmbark on schemes through facilities which were afforded to them by the Government in respect of loans to these public bodies of cheap money. Several of these bodies which have made commitmeni s are now experiencing difficulty in petting money to carry out their engagements. I have no doubt, however, th.it if Mr. Alien be successful, he will he able to assist them t> a moderate extent. But 1 do not believe these bodies will he encouraged to go in for the prosecution of so many public works as they were under previous Governments.."

" The small margin between our imports and exports shows that there is still a large amount of private, extravagance, and it would greatly assist in restoring the financial equilibrium if a little more thrift were pra-ctrseri. Judging, however, from the enormous number of people who are to-day on the wing throughout the Dominion, paying \isits to Australia, and hooking their pa-s.igc by oversea steamers, there does noi seem to be much indication of an intention to practise private thrift."