PRICE OF MONEY

Marlborough Express, Volume LIV, Issue 189, 11 August 1920, Page 4

PRICE OF MONEY

INTEREST RATE CONTROLLED.

[from our correspondent.!

WELLINGTON,; Aug. 10.

"As Minister for Finance I-haver teen doing everything possible and! ir>tend.going on doing it to keep down the rate of interest to a reasonable point." declared the Prime Minister in the House to-day. Be assured^ members tiiat if he gave way to numerous requests in a short time the* rateof interest would be up to 8 per cent.

This statement was made as are-' suit of a. question hy Mr Sidey (Dunedin South) regarding the difficulties? of local bodies arid educational authorities, Avho found themselvesl unable to borrow money within theofficial limitation of o£ per cent. One; educational body had been informed by the bank that in future the charge* on the overdraft would be 6 per cent. Mr Massey expressed the opinion that the Government could -not interfere with the' interest on overdrafts* but it was controlling the general rate of interest.