MONEY MATTERS.

Nelson Evening Mail, Volume XLVII, Issue XLVII, 8 March 1912, Page 6

MONEY MATTERS.

TEMPORARY TIGHTNZ iS. SOME OF THE CAUSES. CHRISTCHURCH, March 7. TJiere has been, says a "Post" correspondent, a noticeable tightness in the money market in Christchurch for some time, and those who are in close touch with financial affairs have been speculating in regard to the causes that have brought about the position. Up to the present time the rates of interest have not risen generally, but there are signs that they will harden, and there is a feeling amongst business men that it is wise to follow a policy of repression and caution, keeping things well in hand. .Less money is available now than there was formerly for mortgage purposes, and some individuals and firms are experiencing a slight difficulty in adjusting their linances. As far as the banks arcconcerned the tightness is more threatened than actual. It may be felt to a greater extent through the banks in the middle of the year, but on the other hand, the disposal of the remainder of the season's produce may bring in better conditions. Apparently a number of causes have been operating. In the first place, it is thought that the industrial unrest in the Old Country, demonstrated by the great strikes, is making itself felt in this part of the world. Another important cause, it is believed, is the relative positions of the Dominion's imports and exports. The imports have been greater than the exports, and consequently more money is going out than is coining in. When studying this aspect of the question a good deal of consideration must be given to. the inotoi car, which now occupies a sufficiently important place in modern life to be ;> factor in disturbing the balance of trade. There is the capital cost o.' '.hi car, to which must be added running ex penses, including tires and petrol. ml. , •finally ,repairs and accessories. i nese absorb a considerable portion of surplus incomes which, before the motor cai cnme on the scene, was available frar investment, and was usually pla -ed on mortgage. Lai'ge sums of money ii?v< latelv been invested in blocks of Siibur ban land purchased for sub-div.j! jn, and this may have also had an a;>t>i':-ri.i.">le effect on the total sum available for investment. When the position is considered superficially the local . political crisis which has thrust itself upon everybody's attention is regarded .--s another cause, but the general' opinio l ! is that '* ha« had no financial effe -t ."h'-tever A professional gentleman who is breivlir into direct touch with iind nvpors • ...i lenders, however, stated \esterdiy that he believed that some jnv< u>rs < f money, anticipating the a 0.-si-ri of the Reform Party to power, tcfianed ft run investing, with the hope that rates would rise. They thin *.t that i'i-ic would not be quite so mich iiiorif.V i able in the Advances 'o Settler* ind I 4(1 vances to Workers Depa> i.r.i urs, that theft* he a greater dev nn.i fur private money, aril] that me raUs v.tu'.d increase by perhaps hall 1 • t per --if Just now the Government Leading l'ep*i{.tnef;l,s are restricting their I i:-:is t. small snips, HfiJ many I utii.-s;* |.r hope that relief vvjll ci»ni»> l.y tho-n I-c----pnrlmcins operating upi-i" ;t |: ben. 1 scale. In uny case, no fjtu is .Mtieruun ed that the tfghtncNS .vill 1 two •'i; n temporary, and business in Christchurch and in other centres of the Dominion id Absolutely sound.