INTEREST RATES

Evening Post, Volume CVI, Issue 16, 19 July 1923, Page 10

INTEREST RATES

5 DOWNWARD TENDENCY EVI- ' - :H DENT.. ■:.-.-,. Z When tie i^blic 'Trust Office"annual ;:report was tabled in Parliament yester- °- iay, on© o£ the questions raised was that Jtf the investment of the funds. Mr. LiT'eitch (Wanganui) said he believed "that ihere were large accumulations of money -in. the office because, according to his they required too high_ a Jcargin of security in • connection with Applications for loans: If there were "large sums" awaiting investment, he hopJed they would be made available to bor--xowers,. because it was reported that was a shortage "of money among . jjinancial institutions.

* The Prime Minister admitted that tha :Pnblic Trust Office had a. good deal of 'money available, but it had loaned ■more than usual lately at 6 per cent. The Public Trustee had been instruct-

;sd to continue to do so on -broad acres

where there was proper security. The -rate paid to beneficiaries of the Bepart~m'ent from the common fund varied a 3ittle, but it averaged 4j per cent. 'I Mr. Wilford: "You pay ;4£ per cent, and" charge 6 per cent."

''■ The Prime Minister replied that the jtendency. of interest rates was downwards. He was satisfied of- this from information obtained of financial authorities, and he had heard only that morning about a lending- institution, taking ■up a mortgage for seven, years at 6 per Sent.