WHY 'MONEY" IS DEAR.

Otago Daily Times, Issue 15602, 4 November 1912, Page 6

WHY 'MONEY" IS DEAR.

LOCAL POLITICS NOT A FACTOR.

(Fnosi Our Own ConnEsroNnENT.)

WELLINGTON, November 2.

Some interesting remarks regarding the present pric.i of money were nuule by the Minister of Public Works in the House of Representatives on Saturday morning. An attempt bad been made by Mr Russell to show from the Post Oflicc Savings Bank's statistics that the change of Government had injuriously affected the country, and it was this that led to (he Hon. Mr Krascr's remarks. He was positive that the majority of members knew that depositors in the Savings Bank did not consist entirely of men with small means. The rate of interest being high many depositors had withdrawn money for more profitable investments, and that woidd always happen in such circumstances. For many years past people had not had suilie.ient confidence to invest their money in industrial concerns. That could not be gainsaid. Mr Isitt: Why has the rate of interest jumped up as soon as you take office?

" I am surprise:! at the lion, gentleman," replied Mr Fraser. " 1 had given him credit for a little more knowledge, lie knows perfectly well that the rale of interest here is a matter which is dependent on things outside New Zealand. It is simply ridicidous to say that a Ministry is going to raise tho Lite of interest in this country, The truth of the matter is that in Australia and in this country money is short, and a very large amount of capital lias gnu; l out of the dominion There is no question that hundreds ''[ thousands of pounds, if the truth were known, have gone out of Ibis country and out of Australia, too, fur investment in various other countries. Canada has got a good deal of it, and at the moment we have not in New Zealand sufficient floating capital for the ordinary' industries of the country, and that is why 6 per cent. and 6j per cent, has to be paid for it."