The Star. THURSDAY, DECEMBER 14, 1882 FARMERS AND THE MONEY MARKET.

Hawera & Normanby Star, Volume III, Issue 370, 14 December 1882, Page 2

The Star. THURSDAY, DECEMBER 14, 1882

FARMERS AND THE MONEY MARKET.

We referred the other day to the harvest and the wool clip as being likely to affect the state of the money market in New Zealand ; but it is so often assumed that trade depends chiefly upon merchants and tradespeople that it may be well to point out that even in a manufacturing country such as Great Britain, the producers constitute an all important factor in monetary results which affect the whole community. If this be so iv Great Britain, it is certainly quite beyond question in New Zealand, which is, as its exports show, a wool, meat, and grain producing colony. Thus, the Saturday Review, in an article on the money market, under date 9th September, says :—": — " Beginning some time in July, there is a steady flow of coin from London to the country, which continues until the middle of November, when a reflux sets in. The outflow of notes is less regular, there being frequent fluctuations in the movement ; but still the general tendency is that both gold and notes flow out from the bank during the autumn, and that the reserve falls to its lowest point about the middle of November. This movement is caused partly by the harvest requirements — by what the Americans call ' the moving of the crops ' — the cuttiDg and getting in, that is, of the crops of all kinds, and the bringing I them to market ; and partly by the selling off of fat cattle, and the restocking of pasture lauds for the coming winter. After the middle of November coin begins to flow back from the country to London." The same authority goes on to say : " This year the crops are large, and, if the weather of September is favorable, there will be great activity in all tbe agricultural districts, and consequently a more than usual demand for money to pay the harvest laborers. If, moreover, the harvest turns out well, the farmers will be better able than of late to cultivate and re-stock their lands ; and to do this they will also require more funds than for the last few years. And, lastly, the greater prosperity of the farmers will give a new impetus to trade, and thus add to the demand for currency." To apply this to New Zealand is simple enough. Already we hear that mutton has been realising high prices in the Wairarapa ; from one flock a draft of three thousand wethers and from another a draft of 2,000 wethers have been sold at «£l' per head. There is every prospect of an

improvement in the meat trade, and also of a good harvest in New Zealand, Should this anticipation be realised, there are better times in store for all classes. And as trade in Great Britain showed signs of improvement, those who can hold on to their wool, and ship Home, will probably profit by doing so! ' *