MONEY MARKET.

Manawatu Standard, Volume XLII, Issue 10122, 1 November 1917, Page 6

MONEY MARKET.

The banking returns for the September quarter reviewed in this issue reveal the laet thiil ihe bank? still have a huge supply of funds in hand, though the amount shows' a reduction 011 both tlie ..previous-quarter and a year ago. and the following comparison of' deposits and advances clearly sets forth the position :—. Sept. 1817 June, 1917 Sept. 1916 £ i> a Deposit- 35,71.17.637 37-,200,15 C 32.59'J,3C0 Advances 20.415,452 28.280,303 24.677.905 Tlie surplus of deposits shows a moderate reduction of £020.150 in 1 the year, but a somewhat heavy decline of £1,627,692 in the la;-! quarter. This ;is the usual movement at this line- of the year, as in the .J line quarter funds are generally at their highest level, but the decline is £655,473 more than in the same, period last year, .which is probably chiefly due to the shortage of freight, delaying the-realisation of a large amount ol our produce. As these returns are the averages for the.quartrr, they do liol show much ejl'ect from the raising of the war loan, which would only affect the last month 01 the quarter. However, though-t.he loan will cause a lai-L-e transference of funiE from private to Government accounts, the money will I'dler back again, andthe bulk of it remains in tlie Dominion. The general supply of funds should, therefore, remain ample for ordinary requirements, The trouble of securing sufficient tonnage to movewour produce is still prevalent, and our prosperity is dependent on this great factor. The Government has fomul it neees. sury to take power lo raise a further four millions, owing partly, to falling oft' in Custom receipts, and it Is" not deemed prudent to increase taxation at present.—X.Z. Trade It (.'view.