CHEAPER MONEY

Feilding Star, Volume 6, Issue 1911, 23 May 1928, Page 5

CHEAPER MONEY

,\ MINISTER'S ADVOCACY LOWER RATES JUSTIFIED RETURN INO PROSPER ITY (Per Press Association), Auckland, May 22. A reduction in bank, rates was advocated by tlie Minister of Health, the Hon .1. A. Young, speaking at the opening of the Advertiiing Exhibition in Auckland.

“I Pope bankers will see the necessity before long for trusting us with lower rates ol interest, ’ he said “ When they can see their way to do that, financial conditions will be made a little movci attractive to the farmer and tlie business man than

they are. to-day ” The Minister s’iiid thnti lower rates were justified by the improvement in the export trade, the buoyant state of the British investment market and fffo si "ns of returning prosperity in the Dominion. “If ici gratifying to note , f'nafc healthier tone, is prevailing in fft© community,” lie said. “When the balance of trade goes against us, as it did to ihe extent, of £3 000,000 in 1927, we are looking for trouble, but when the balance turns in our favour as it lisus done ibis year to tile extent of £‘10,000.000 then money is brought into the country for investment.”

The Dominion’s credit was reflect ed in financial operations in London. The Lew Zealand Government’s last loan of £5,000,000 for development purpepes was fully subscribed when the the officers opened for business at 11 a.m., and seven times over-subscribed when. the offices closed the same day. That pointed to an .abundance of money in the Old Country and was a magnificent eompjiment to the Government "nd people of New Zealand.