BANK DEPOSIT RATES.

Press, Volume LXIX, Issue 20905, 12 July 1933, Page 11

BANK DEPOSIT RATES.

NOW AS LOW AS IN AUSTRALIA. MORTGAGE MARKET STILL UNRESPONSIVE. After the further reductions which took effect yesterday, the deposit rates offered by the New Zealand banks are now as low as those paid in Australia. These are the fourth reductions made in two years, and they have brought the rates lower than they have ever been within the memory of Christchurch bankers. The new rates, compared with those previously ruling, and those ruling prior to December 1, 1932, are as follows: P.c. p.a. Prior New Former to rates, rates. Dec, 1933. 1933. 1932. 3 and under 6 months 2 2\ 3 6 and under 12 mon.hs . . 1\ 1\ z\ 22 and under 24 months .. 2J 3 3A 24 months .. 3 3} 4~ Previous reductions, each of from \ to \ per cent., were made on August 1, 1931, and June 1, 1932. Before August, 1931, the rates ranged from 3J per cent, (three to six months) to 5 per cent. (24 months). Higher Rates Still in Force. The new rates apply, of course. onJy to new deposits and to renewals. Substantial amounts of fixed deposits still at 5 per cent, do not mature until the end of this month; other deposits at 4J per cent, run until May 31, 1934, and others again at 4 per cent, until December 1, 1934. From May 1, 1933, the banks reduced the "best accounts" overdraft rate from 6 to 5 per cent., and the higher rates correspondingly. The Mortgage Market. It is regarded as extremely doubtful whether the new reductions in deposit rates will, under present conditions, encourage mortgage and industrial investment. According to an authority who was seen by "The Press" yesterday, the mortgage market is "dead" and is not likely to be revived until there is a general improvement in conditions and some assurance against further legislative interference. The closing of the mortgage market, he said, was itself largely responsible for the successive reductions in the banks' deposit rates, since it had caused to be deposited with the banks large sums of money which would otherwise have been invested on mortgage and which the banks themselves had been less and less able to put to profitable use.

INTEREST ON LOCAL j BODY LOANS. j STATEMENT BY MR FORBES, j (itkitbd vr.r.ss association—by elictbic TELEOKA PH—COP VRIOHT.) (■Received July 11, 8.15 p.m.) j I LONDON, July 11. j The Prime Minister of New Zealand, the Et. Hon. G. W. Forbes, has issued for publication a long statement announcing legislation validating ster- 1 ling interest payments on New Zealand local authority debentures here. The City Editor of "The Times," approving of Mr Forbes's statement disposing of the chief questions arising out of New Zealand loans, says the London Stock Exchange's arrangements will completely satisfy the market. Investors will note the Government's attitude that the moral obligations are regarded as superior to the legal obligations. POST OFFICE SAVINGS BANK. .NEW RATE OF INTEREST. TBT.S3 ASSOCIATION TICEJIUW.) WELLINGTON, July 11. Tlw Minister for Finance, the Rt. Hon. J. G. Coates, stated to-day that, pursuant to the Government's policy of bringing about lower interest rates generally, and following the conversion operations in respect o£ long term securities, reductions were made in the deposit rates of banks, savings banks, and building securities, while maximum rates were fixed for local bodies. As part of this arrangement, the rate of interest on deposits with the Post Office Savings Bank was fixed at 3 per cent, for all deposits up to £2OOO, as from April 1. It was considered that the time was opportune to revert to the former practice of fixing a lower rate on larger sums, said Mr Coates, and a notice would be published in this week's Gazette, fixing the rate at 2.? per cent, on deposits in excess of £IOOO, and no to a maximum of £2OOO. The new rate would be operative from August 1. On deposits of less than £IOOO there would be no change. HIDES AND SKINS. AUCKLAND MARKET FIRMER. [THE PRESS Special Service] AUCKLAND, July 11. After an easing tendency at the previous sale, hides again firmed at the fortnightly auction held by the Auckland brokers to-day. There was an average advance in values of from id to id per lb. Local tanners were the chief operators in the market, but some lines were taken by oversea* U The S in the London market for sheepskins was reflected in a rise of id to Id per lb in the value of dried skins, while salted skins were 0d to Is each higher according to SlZ The tallow market was a shade better, first grade selling up to £l6 10s a ton. BUILDING SITE SOLD. W F, ftimea and Compuny report having .old ' on' behalf of Mrs Lummis, her bundins site in NcUon atrce, < R'cc&r'on. to Mr Jones-