FINANCIAL CONDITIONS

Evening Post, Volume CVII, Issue 27, 1 February 1924, Page 11

FINANCIAL CONDITIONS

In his speech at the annual meeting of the Equitable Building Company, the chairman stated :—There is. unquestionably a marked improvement in the financial conditions of the Dominion at the present time, due partly to the excellent prices realised: for our primary products, and partly to-the comparative^ ly heavy: borrowing- by the Government and public bodies —money or credit is therefore in fairly abundant supply, and the-resultant effect will be to reduce the lending rates. In. point of fact, the lending rate haa already fallen by at least one-half of 1 per cent. However, it would be unwise not to take cognisance of the nervous state of the European money markets, especially those of. London and also of New York, where bankers, financiers, and capitalists generally are much alarmed at the prospects of a Socialistic Government securing control- in Great Britain.. These fears, I trust, may prove entirely groundless-. The Labour Party has- placed a levy on. cap, tal in the forefront of its political pro : gramme, and, judging by what happened in Switzerland when a similar pro: posal was referred to the people, the grayest disasters may be anticipated from any attempt to put such a- proposal, into effect in Britain! In the meantime, the lending rate, owing, to the plethora of available credit in New Zealand is,, as I have already indicated, tending downwards. Stilly I apprehend no . difficulty in this company being able to maintain its customary dividend of 10s per shara per annum. It affords the directors great pleasure to be in a position now to recommend the payment of a special dividend of 5s- per- share, which, owing- to the acute financial conditions then ob: taining, was withheld for the half-year ending 30th June, 1922; . It was un T doubtedly earned for that period, 'but; for the reasons; then "given, which I need not repeat, was not declared.