LOWER INTEREST RATES

Greymouth Evening Star, 29 December 1934, Page 2

LOWER INTEREST RATES

MR COATES’S COMMENT. [per press association.] AUCKLAND, December 28. Concerning a cabled summary of a survey made by the Chancellor of the British Exchequer (Mr Neville Chamberlain), the Minister of Finance, Mr Coates, stated in Auckland to-day that an era of cheap money was one of the essentials of a recovery from trade depression. Me (Mr Coates) heartily agreed with that -aspect of the policy being followed in Great Britain, which could not. fail . to benefit New. Zealand— directly insofar as loan conversions were concerned, and indirectly insofar as it was instrumental in promoting a trade recovery. . . Mr Coates pointed out that a similar policy was being consistently followed by the Government in New Zealand, and, as a result, the G° v_ eminent and local body securities had been established at lower rates of interest and bank rates and deposit rates generally had been brought down to a low level. “There remains, however, one large field in which a comprehensive stabilisation of finance has not yet been achieved, and this is . the field of mortgage finance,’’ continued Mr Coates. “However, this is a matter which is to receive attention when the session of Parliament is resumed in February, and it is anticipated that far-reaching results will follow from the passing of legislation for the establishment of a Mortgage Corporation and for 'rehabilitation of farmers’ finance.”