CHEAPER MONEY

Greymouth Evening Star, 17 June 1922, Page 5

CHEAPER MONEY

_ HOMELAND’S IMPROVED PROSPECTS. (Australian and N.Z. Cable Association.) LONDON, June 15. .- The bank rate has been reduced to per cent. Financial and commercial circles welcome the reduction which makes the rate the lowest it has been since January, 1914. It is taken as an indication that conditions aro moving towards normality. The reduction will, it is expected, stimulate a recovery in British commerce. It is believed that the Governors of the Bank of England were influenced in their decision to reduce the rate by the improved labour outlook and by the improved outlook in Ireland. The Governors wore also desirous of making tho Indian Loan a success, cheap money is also essential for other extensive loan operations imminent. WHAT ABOUT DOMINION? (Per Press Association.) CHRISTCHURCH, June 16. Referring to the reduction in the Bank rate, Mr Masey said that, needless to say, he was very pleased to see it. “I think it a very fine thing for the whole of the Dominions,” he said, “and, under the existing circumstances more particularly perhaps for New Zealand, because it means that money is now plentiful in England, and is gradually getting cheaper; and, as money becomes more plentiful, so will trade improve, along with the purchasing power of the people there who are our best customers. I hope the time will soon come when we shall find a reduction in the rate of interest in this country. The local bodies, farmers and business men all want cheap money. The sooner, it comes along the