SCARCITY OF CAPITAL.
WHY MONEY IS DEAR. STATEMENT BY MINISTER. [bt TELEGRAPH SPECIAL correspondent.] Wellington, Saturday. Some intere&ting remarks regarding the present price of money were made by the Minister for Public Works in the House of Representatives on Saturday morning. An attempt had been made by Mr. Russell (Avon) to show from the Post Office Savings Bank statistics that the change of Government had injuriously affected the country, and it was this that led to Mr. Fraser's remarks. He was positive that the majority of members knew that' depositors in the Savings Bank do not consist entirely of men with small means. The rate of interest being high, many depositors had withdrawn money for more profitable investment, and that would always happen in such circumstances. For many years past people had not sufficient confidence to invest their money in industries. That could not be gainsaid. Mr. Isitt (Christchurch North) : Why has the rate of interest jumped up as soon as you take office? " I am surprised at the hon. gentleman," replied Mr. Frasor. " I had given him credit for a little more knowledge. He knows perfectly well that the rate of interest here is a matter which is dependent on things outside New Zealand. It is simply ridiculous to say that a Ministry is going to raise the rate of interest in this country unless it happens to be so reckless in its conduct of affairs that people really get alarmed. .The truth of the matter is i that in this country money is short, and a very large amount of capital has gone out of the Dominion. There is no question about that. Hundreds of thousands of pounds, if the truth were known, have gone out of this country and out of Australia, too, for investment in various other countries. Canada has got a good deal of it, and at this.moment we have not in New. Zealand sufficient floating capita! for the ordinary industries of the country, and that is why 6 per cent, . and 6£ percent, have to, be paid for it.
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New Zealand Herald, Volume XLIX, Issue 15141, 4 November 1912, Page 7
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345SCARCITY OF CAPITAL. New Zealand Herald, Volume XLIX, Issue 15141, 4 November 1912, Page 7
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