THE MONEY MARKET.

Gisborne Times, Volume XLIX, Issue 5000, 15 October 1918, Page 6

THE MONEY MARKET.

SIR JOSEPH AVARD REVIEWS POSITION. INCREASED TAXATION CERTAIN., Press Association Telegram. AUCKLAND. October 14. Reviewing the financial situation and the position as regards further war loans, Sir Joseph AVard stated that iii the ordinary course it would be necessary for New Zealand to- obtain more money to carry on her share in the war. “Even if it ends in five - months from now,” he stated, “it i.s certain the heavy taxation we are undergoing at present will be greatly increased. I have no doubt as to the capacity of. the Alotherland and Dominions to carry out their new obligations until they are extinguished in years to come without seriously affecting or impeding the progress- of the Empire as a- whole.” Personally he was not of opinion, as the result of close examination, that interest would bp as high after tlie war as was thought in some quarters. On tho contrary, he considered that once the .present huge expenditure for war purposes stopped, fresh channels must he found for large sums that would no longer bo required for such purpose. No one could say what the position would he, but liis conclusions, as the result of investigations, was that money would not bo high either in England or overseas fox a long time. After the necessity for carrying on the war ceased] there would be enormous savings in all countries- now nt war through disarmament and reduction in navies. So far as building programmes and upkeep were concerned, under peace conditions neither war vessels nor crews, nor equipment for them, would he necessary. There must, in the ordinary course of things, be a large surplus of ships and men beyond requirements after the war. as compared with requirements during the activities of the war. As the result of money obligations due to the war, not only in the Alotherland, but throughout the Empire, it will be necessary to .meet quite a new situation. One can only generalise on the dimensions of the war debt, but certainly w e are all in for a period of increased taxation. There is no need whatever for gloominess. On the -contrary, a people which can .provide for all its requirements as the British have done, and at the same time make such a powerful contribution to the financial needs of some of their Allies, may surely he depended upon to meet the after-war conditions satisfactorily. Press Association Telecram. AUCKLAND, October 14. Air. Harold Beauchamp, chairman of the Bank of New Zealand, who is visiting Auckland, remarked that as a result of good prices received for our produce from the Imperial Government money was very plentiful and was cheaper to-day in New Zealand than in any other part of the world. He instanced tlie fact that whereas New Zealand hai; been iaisino- war loans at 41 per cent, tiee of income tax, Canada now was floatin" a loan at 54 per cent; also free of taxation. The Imperial Government had been selling short-dated treasury bills in New York at a price which gave investors 6 per cent., out similar bills sold in London yielded -a return of only 3-4 per cent. The low price paid in England, probably was accounted for by a desire to induce visitors to take up longer cuirenev war loans, but the cause o the higher price paid in America had not been explained. Air Beauchamp said that money in New Zealand vas now obtainable on mortgage at o 2 pci cent, to 6 per cent This however, was subject to taxation, which m the case of persons ofiarge incomes meant a reduction m the net J etui n to the extent of 7s 6d in tne pound.