THE MONEY MARKET.

Poverty Bay Herald, Volume XXXIV, Issue 11127, 16 November 1907, Page 1 (Supplement)

THE MONEY MARKET.

on the money market^ the New Zealand Trade Review states; — '

The banking, i eturns, wliich are reviewed m another column, show the usual movement^ q| tlie September quarter, IWft^y, increase of advances and decrease of' deposits. That these calls are heavier than usual may be accepted a% ft favorable symptom or otherwise, acoording to the surrounding cirgumetAnceei, It can scarcely, a.s a, ntfe, be regarded as a healthy sign when deposits are allowed to accumulate, jn the hands of the banks, yielding to depositors only a low rate of interest or none at all,' and it i^ bettey for the country when such accumulations find more active employment m the promotion of enterprise and feh© prosecution of industries. As there are no visible signs of any serious disturbance of the prevailing prosperity, we welcome, a& a. sign of renewed activity, the increased withdrawals 0)1. the lasfc i twelvemonth. The abgorpttan of' floating capital by the Post Office Savings Bank continues on an increasingly heavy scale. While m the twelve-month ending with the 30th ultimo tlie fixed deposits m tlie har\ds of the five banks trading m New ilealaiid, have been reduced by oyer £850,000, the deposits!, m the Savings Bank have -been increased by against £5815,---832 }ii the corresponding preceding twelve-month. This, though not tlireatening anj' immediate trouble, seepis to indicate thai the Savings Bank, is being availed of for a clas?s of business for which it was not intended, nnr\ scarcely .be considered ,heat_thj^ though the funds thus placet^ a\ disposal of the Government. n,q, m useful ior publiq piprpsea. Government 4 per cent, debentures are still being sold over the counter at par* and a good many local goverruna bjodies are m the market a? l#.itfo,w*ispat.' the same rate q$ l^Ua. higher, a^cordma to civciansto^ces;. '^ T lv the 4p§n market money is available for. loans on mortgage security at from H to 6 per cent,, according to amoiinV and character of security.