ERA OF DEAR MONEY

Evening Post, Volume CVI, Issue 141, 12 December 1923, Page 5

ERA OF DEAR MONEY

price High in Australia

DUE TO. NEEDS OF MERCHANTS AND IMPORTERS.

(BI tELEGRAPH.—StECtiU. TO 188 FOST.)

AUCKLAND, This Day. "Australia is pasinsg through an era of dear money/ declared Mr. Ales. Jobsbh^editor of "Australian investment Digest," in the course of some remarks regarding the financial position in the Commonwealth. Owing to the large amount of money needed to finance importers, merchants, and primary products, the price of money wa6 hicrh, Mr. Jobson stated. Tax-free loans, "lie added, would come to an end on 31st December, the Commonwealth Government having already passed the necessary legislation preliminary .to the abolition. When all the separate States had similarly put through legislation on the matter, the Commonwealth " Act would come into force. Meanwhile the price of Commonwealth loans on the market had decreased, and the rate of interest yielded by them had increased. It is not easy to say whether money will continue to become dearer, Mr. Jobson added, but some relief should' be afforded by the payment of Cofhirionwealth interest oh War loans on 15th December, and- \he distribution of the nineshilling share in Bawra in February, The proceeds of the wheat and wool harvest, now beginning to Accrue, will also tend to increase the available-supplies bf .money, though the demands Of the States for their requirements fof loan redemption and expenditure, and for loan renewals, makes one feel that it will continue to be dear for some time to come. The wool clip was smaller in volume this season, continued Mr. Jobson, but the ■price had been good 1; in fact, in some cases abnormal.' It. would appear likely that- good prices would be maintained so that whatever reductions there might be in volume are likely to be compensated to some extent by high values; Business on the whole had been quiet in Australia, but an improvement was noticeable at the beginning Of th* present month, and the prospects for Christmas trade were good.