THE BANK RATE.

Manawatu Standard, Volume XLVIII, Issue 149, 24 May 1928, Page 2

THE BANK RATE.

REDUCTION ADVOCATED BY HON. J. A. YOUNG.

WARRANTED BY IMPROVEMENT IN EXPORT TRADE.

AUCKLAND, May 22.”

A reduction in bank rates was advocated by the Minister of Health (Hon. J. A. Young) when speaking at the opening of the Advertising Exhibition at the Town Hall to-day. “I hope bankers will see the necessity before long of trusting us with lower rates of interest,” he said. “When they can see their way to do that the financial conditions will be made a little more attractive to the farmer and the business mail than they are to-day.” Lower rates would be justified, according to the Minister, by the improvement in the export trade, the buoyant state of the .British ilivestmint market, and sighs of returning prosperity in the Dominion. - It is gratifying . to_ note that a healthier tone is prevailing in the community,” he said. “When the balance of trad© goes against us as it did to the extent of £3,000,000 in 1927 we are looking for trouble, but when the balance turns in our favour as it has done this year to the extent of £10,000,000, then* money is brought into the country for investment.” The Dominion’s credit was reflected in the financial operations in London. The New Zealand Government’s last loan of £5,000,000 for development purposes was fuly subscribed wlien offices opened lor business at 11 a.m., and seven times over-subscribed when the offices were closed the same day. That pointed to a revival of trade and ail abundance of money in the Old Country, and was a magnificent compliment to the Government and the people of New Zealand. The Minister appealed to New Zear landers to give preference to Britain over America in the matter of purchases. “As far as I'can judge from an analysis of conditions in America and Great Britan,” he said, “the jieople of America are salesmen pure and simple, but the British manufacturer is something more: he is a trader-—a buyer and seller—and he buys your goods in return. They are the people who build up your trade. Our export trade .has shown a great increase this year, the balance over imports amounting to £10,060,000 in our favour. It establishes, my statement that the Britishers are traders—the buyers of our produce—and this should "encourage us to trade within the Empire whenever we &iossibl,y «wi.”