THE MONEY MARKET.

Poverty Bay Herald, Volume XXXIX, Issue 12706, 8 March 1912, Page 3

THE MONEY MARKET.

A NOTICEABLE TIGHTNESS

SPECULATION AS TO CAUSES

(Special, to the Herald.)

CHRISTCHURCH, this day. There has been a noticeable tightness m the money market m Christchurch for some time, and those who are m close touch Svith financial affairs have been speculating m regard to the causes that have brought about the position (says the- Lvttelton;Times). ;> Up to .the -1 present time^the -jra'te's' oCviriter.est. have {'not risen generally.' 'but'-th'eS^are will - and there is a - feelinjr •imongst business men that it would lv wise to follow a .policy of renression an<? caution, keeping things well m hand There is less money available now than there was formerly for mortgage purposes, and some individuals;; .-md firm? are experiencing a slight difficulty m nd iusting their finances. As far as th? banks are concerned tbe business is mor* 5 threatened than actual. Apparently r number, of causes have been operating Tn the first place it is thought that thp industrial unrest m the Old Country demonstrated by the great strikes, if making itse'f left, m this pm-t of tb« u-nrld. Another important cause, it i? ibelieved, is the relative positions of thp Dominion's imports and exports. TV imports have been jrr«"it°r than the e-----nort*. and consennentlv wore mo"'"" i° •ming out than is er.mb?T m. TTrhosturMig Ibis a.s"«»ct of the nnestion : deal of consider"*!' - "! nwi 1 c .71 to the motor car. which now occuvtie? ■> sufficiently, important plnce m moderp life to be a factor m disturbing the balance of trade. There is the capita l cost of .the car. to which must be adde** running expenses, including lyres and netrol, and finally repairs nnd accessories. These absorb a, considerable amount of surplus incomes wliich before the motor • car came on the scene wa? available for. investment, and was usually placed on mortgage. Large sums of money latterly have been invested, m bird's of suburban lind purchased for subdivision, and this also may have had an' appreciable effect on the total sum av"'Hnle f° r investment. When the position is considered superficially, the local political crisis, which has thrust itself upon everybody's attention, is regarded as another cause, but the general opinion is that it has no financial effect whatever. A professional gentleman who is brought into direct touch with land-owners and lenders, however, stated that he believed some large investors oi money, anticipating the accession of the Reform party to power, refrained from investing, with the hope that rates of j interest would rise. They thought that there would not be quite so much mone\ available m the Advances to Settlers and Advances to Workers' Departments, that there would be a greater demand for Government money, and that the rates would increase by perhaps half or one per cent. Just now the Government departments are restricting their loam to small sums, and many business people hope that relief will come by those departments operating upon a more liberal scale. In any case, no fear is entertained that the tightness' will be mow than temporary.