MONEY MARKET. WILL THERE BE STRINGENCY? AUCKLAND OPINIONS.

Evening Post, Volume LXXXIII, Issue 73, 26 March 1912, Page 3

MONEY MARKET. WILL THERE BE STRINGENCY? AUCKLAND OPINIONS.

[SV TBLEGBAPH— SPECIAL XO THE POS?.] AUCKLAND, This Day. _ AlthouKU a stringency in the money market of New Zealand as a whole has been predicted, several prominent citizens of Auckland versed' in finance consider that Auckland is likely to fare less harshly tnan other cities, even if such, a stringency does occur. "One of the saving features, &o far as we are concerned," said a commercial man, in reply to st, Star ltpreientative, "is that the City Council and subiuban local authorities have announced large public workE expenditures. This, of course, will add to the circulation of the coin of the realm and cause a greater distribution of wealth among the community aL large." At the same time, it was pointed out by others/ Mew Zealand is likely to participate in tho financial reaction wnich is threatening England on account of tho labour troubles there, and which is likely to extend to' America, as a result of •the cessation of activities because of Presidential elections. Somo of the bankers stated that a feeling was abroad in recognition of need for caution, and this was having the effect of tightening the money market to home extent. So far, theit> had been no general rise in rates> of interest, but private investor* had been holding off. anticipating that such would occur. It was. however, more anticipated than actual, and would probably not bo experienced before the middle of tho >oarl Even then it might be staved off by a successful disposal of the remainder of the season's produce. The excess of last year't- imports ovei exports was also an influence, it was pointed out, but in this connection the iact should not be overlooked that the procuring of luxuries, such as motorcars from abroad, may have anticipated the available* supply of spare capital ins some measure. Again, a good deal of. money was locked up by reason oi" large purchases of blocks of suburbn-n land for disposal in building sections later on. Is the money market being affected by the local political crisis? waa a question put to another authority. "There is no doubt that this is exercising a halting influence, so to apeak," was the reply, "but the general belief is .that it has had no direct effect whatever." This gentleman said it was probable that the Advances to Settlers and Advances to Workers Departmente would not liave ac much money available aa previously if a change of Government occurred. Even now the lending departments of the Dominion were restricting their loans, and this would result in a greater demand on private capital for mortgagee and private, relief. "Although I believe we are now on the crest of the wave," h& remarked, "I believe that trade ia t quite sound, and that any possible financial stress will be only of a temporary nature.