INTEREST RATES

Manawatu Standard, Volume LV, Issue 238, 5 September 1935, Page 6

INTEREST RATES

MAY YET GO LOWER. MINISTER’S OPINION. Per Press Association. WELLINGTON. Sept. 4. The opinion that in the future interest rates might become even lower than their present level was expressed by the Minister of Finance (lit. Hon. J. G. Coates) in the House of Representatives. The Minister’s statement was made in reply to a question by Mr J. N. Massey, who asked whether, in view of the importance of interest rates in relation to farmers’ costs, the Minister couid give an indication of his recent inquiries in other parts of the world as to the future trend in this’ matter.

“At the Ottawa Conference in 1932,” Mr Coates stated, “the British Empire made a common declaration of policy in support of long term loan interest rates, and undertook to foster whatever steps were necessary to bring such a policy to a successful fruition. In 1933, at the end of the World Economic Conference, the British and Dominion representatives reiterated their intention to do everything possible to establish low rates for long term money. “Inquiries I have made recently in various parts of the world show that the British Empire policy has not only been successful, but has been followed by many other nations. The pressure of money seeking investment is such that a great deal of world stability is necessary before any continuous trend upward is visualised. Short-term money throughout the world is at remarkably low levels, and it is becoming apparent in most places that rates for long-term money invested in sound securities are coming more closely into conformity with the low short-term rates. Some authorities consider that interest rates may go lower yet.”