THE BANK RATE

Pahiatua Herald, Volume XXXVI, Issue 10843, 23 May 1928, Page 5

THE BANK RATE

REDUCTION ADVOCATED HON. J. A. YOUNG SPEAKS OUT Electric Telegraph—Press Association AUCKLAND, Last Night. A reduction in hank rates was advocated by the Minister of Healtii (Hon. J. A. Young) when speaking at the opening of the advertising exhibition at the Town Hall to-day. “I hope bankers will see the necessity before long of trusting ns with lower rates of interest,” . lie said. “When they can see their way to do that the financial conditions will be mjade a little more attractive to the farmer and the business man than they are to-day.” Lower rates would be justified, according to the Minister, by the improvement in the export trade, the buoyant state of the British investment market, and signs of returning prosperity in the 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 we are looking for trouble, hut when the 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 the financial operations in London. The New Zealand Government’s last loan ot £5,000,0(X) for development purposes was fully subscribed when offices opened for business at 11 a.m., and seven times over-sub-scribed when the offices were closed tlie same day. That pointed to a revival of trade and an abundance of money in the Old Country, and was a magnificent compliment to tlie Government and people of New Zealand.

The Minister appealed to New Zealanders to give preference to Britain over America in the matter of purchases. “As far as I can judge from an analysis of conditions in America and Great Britain,” he. said, “tlie people of America are salesmen pure and simple, but the British manufacturer is something more: he is a trader- —a buyer and seller —and he buys your goods in return. They are the people who build up your trade. Our export trade lias shown a great increase this year, the balance over imports amounting to £10,000,000 in our favour. -It establishes mv statement that the Britishers are traders -—the buyers of our produce —and this should encourage us to trade within the Empire whenever we possibly canr”