RETURNING PROSPERITY.

New Zealand Herald, Volume LXV, Issue 19953, 23 May 1928, Page 12

RETURNING PROSPERITY.

HEALTHY TONE OF TRADE. LOWER BANK RATES URGED. A reduction in, the bank rates was advocated by the Minister of Health, Hon. J. A. Young, speaking at tho opening of the Advertising Exhibition in the Town Hall yesterday. "I hope the bankn's will sco tho necessity before long for trusting us with lower rates of interest." ho said. 'When they can see their way to do that financial conditions will be mado a little moro attractive to the farmer and business man than they are to-day." Tho Minister said lower rates were justified by the improvement in the export trade, tho buoyant state of the British investment market and signs of returning prosperity in tho Dominion. "It is gratifying to note that a healthier tone is prevailing in the community," he said. "When the balance of trade goes against us, as it did to the extent of £3,000,000 in 1927, wo are looking for trouble,, but when tho 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 financial operations in London. The New Zealand Government's last loan of £5,000.000 for development purposes was fully subscribed when the offices opened for business at 11 a.m. and seven times oversubscribed when the offices closed the same day. That pointed to nn abundance of money in the Old Country and was a magnificent compliment to the Government and people.of New Zealand-