THE MONEY MARKET.

Auckland Star, Volume XLVI, Issue 64, 16 March 1915, Page 3

THE MONEY MARKET.

ENGLAND'S ENORMOUS WEALTH. An "Otago Daily Times" reporter- had a very interesting.; conversation ' the other day "with a leading Dunedin sharebroker in regard to the present buoyant state of the British and colonial invest-1 meat stock market and the present re-1 markable .cheapness of money. The sharebroker had some interesting ~. re-. I marks to make in connection with the. .prospects of obtaining- a cheap supply; of money after . the .war. "Astonishment is often expressed," he said, "at money being so cheap in- New Zealand and in England. Most people- thought I that when war broke but up Would go the price .of money. .That it has re-1 mained cheap, and indeed cheaper in' England than for. many years, is almost beyond comprehension. What ■- is the I position'! .It is -only now- that the' wealth of the and England particularly, is being. realised. Recently Mr Lloyd George stated that England could, if necessary, finance the war for the next five years out of ' investments abroad. This is a responsible statement to make,' and reveals the enormous wealth of England. It is true that an enormously increased interest bill will require to be met when itthe war fe . oJven-. but most of' this ! amount should be payable by Germany to the British investor, so that money | will then be' pouring into England in I interest. At the present time large sums of money are being spent in EhgI land by the various countries- of Europe. 1 Russia alone is spending over £70,000,- - There is no question that the position in England is remarkable. Every fortnight about £30,000,000 -of I the war loan is paid into the .Treasury land paid out again. It is a constant transfer backward and. forward between the different hanking accounts, and the gold balances, which,-are stated to be between £350,000,000 and £400,000,000, remain intact.- Almost all this money is being spent in England. Instead of money being dear in England after the war, it is possible that it may be no dearer than it was before the war began. These conditions should be reflected in the colonies, and money remain much about the present price." •