FINANCIAL STRINGENCY.

Hawke's Bay Tribune, Volume II, Issue 245, 19 September 1912, Page 5

FINANCIAL STRINGENCY.

J _ -—— — ! SHORTAGE IMPENDING IN j AMERICA. i Washington. S< pt 17. j A monetary st.nngt m ) impend - ing throughout inn I mted States, necessitating the Govi'inment’s depositing funds in the National Banks, which inquire inotii'y to handle the grain crop, worth ten thousand million dollars. HEAVY BORROWING EVERY WHERE. (Received 19, 10.50 a.m.) Sydney. Sejit. 19. Mr. Griffiths, N.S.W. Minister for Public Works in his statement regarding public works says that never iti the history of the State have there been so many railways, irrigation, harbour works. and schools in const ructio". Canada is borrowing forty mill ions lor canals and docks. China wants eighty million for railways, Germany is borrowing to build battleships and the* result is a scarcity of money in the Loudon’market. Although, says Mr. Giiffilhs, "it is not likelv. y< t we may possibly be loinpelled. until moiiex cheapens, to h<»ld iq> some of the railwnv works. \\<> have lately been getting all loans locally, which is a good policy so long as it does not denude the le.i'al market. If wo buy .£lOO.OOO worth of rails from England or America with money borrowed locally, that means we are exporting capital. That policy has gone far enough. We must import capital until matters have adjusted themselves.