THE MONEY MARKET.

Poverty Bay Herald, Volume XLII, Issue 13656, 12 April 1915, Page 7

THE MONEY MARKET.

easier. ooKumoxs the vail. ASSIGN'S EIRST ITEM A WAlt . LOAN. (Special to Herald.) WELLINGTON, this duv. Though thi! Minister of Finance makes no secret of it, most people are unaware of tlio fact that Xew Zealand is not troubled about loan flotations dining the war, but is depending on advances made by the Inrperial authorities, who are always able to get money on good terms. Tliis method of financing i s not, however, to go <m throughout the war, as tho Ron. Jas. Allen indicated to your correspondent m an interesting statement. £300, C00 A MONTH. "Our expenditure on the war is now about £300,000 per month," said the Minister. "It did not come up to that 1 figure at first, but we expect it to keep at that level henceforth. It was obvi- j ous that our two million loan which Parliament authorised last session would not keep us going until Parliament met again, but we were able to make arrangements with the Imperial authorities to continue to supply money for war purposes pending the meeting of Parliament; "Another war loan will have to be authorised as soon as the session begins. HIGH KATES IN LONDON. "Wo have not had to go on the London money market at all. but those countries which have done so have paid 4^ per cent, and some even 6 per cent, and they have had to raise their loans at a discount of 10s, up to £1, the latter meaning a realisation of £99, while the cost has varied, as far a.s I can understand, from £4 17s 6d to over £5 per cent. We have raised a little, m London since the war began, but we have only paid 4 per cent. We are m the fortunate position of not having to go on to the market for our money, and even tho public works requirements we are able to meet for some time."

The Minister was asked if he had not noticed signs of easing m the local money market. He replied that this was only to be expected. "New Zealand," he said, "is most fortunate m its finance. We were lucky indeed to have renabilitated our Advances Department before the war, thus putting us into a strong position, and the recovery of the Post Office Savings Bank has been the other great factor which has strengthened our capital account. As far as the public are concerned v the extraordinary increase m our products exported has resulted m an inflow into the country, which accompanied by restrictions of imports, is all m our favor. These factors must cause accumulation and make money easier. Another easing factor is that there are not .so many demands for money for investments m industries as would be the case m normal times." .