ZEALAND.

Otago Witness, Issue 2812, 5 February 1908, Page 30

ZEALAND.

To the question of how the American financial crisis was affecting England and what its likely effect or New Zealand would be, Mr Johnstone's reply was: — "When I left London at the end of November trade generally was being hampered owing to the dearness of money, and speculation in all commodities and stocks was consequently at a standstill. The bank rate ther was 7 per cent., but financial authorities said that this would be reduced after the New Year holidays. This prediction has been fulfilled, for a recent cablegram informs us that a reduction to 4- per cent, has been made, and the crisis may now be considered at an end. The restriction of banking facilities at the very time when the Australasian wool clio of 1907-1908 was about to be marketed was undoubtedly the primary cause of the shrinkage in values that growers have had to face, and so far as I could learn there was none in the trade sanguine enough to look for an early recovery. Indeed, advices to hand this week indicate that the prospects are still by no means bright, and it .will probably be about the middle of the year before the American demand again makes itself felt on the London wool market. Other colonial products, such as meat, butter, and cheese, were similarly affected by the crisis in the United States."