MONEY MARKET TIGHT.

Colonist, Volume LIV, Issue 13360, 8 March 1912, Page 4

MONEY MARKET TIGHT.

STATEMENT FROM CHRISTCHURCH.

CONDITION CONSIDERED TEMPORARY.

(Special to "Th© Colonist.")

Chrlstchurch, March 7. Ihere has been a noticeable tightness in the'money, market in Cbristehurch for some time, yiid those who are in closo touch with financial affairs have boon speculating in regard to the causes that have brought about the position (says the "Lyttelton Times"). Up to the present t'imc the rates of interest have not risen generally, but there are signs that they will harden, and there is a feeling amongst business men that it is wise to follow a policy of repression and caution, keeping things well in hand. Less money is availablo now than there was formerly for mortgage purposes, and some individuals and firms are experiencing a slight difficulty in adjusting their finances. As far ,afl the banks are concerned the tightness is more threatened than active. Apparently a number of causes have been operating. In the first place it is thought that the industrial unrest in the Old Country demonstrated by the great strikes is making itself felt in this part of the world. Another important cause it is believed, is the relative position of the Dominion's imports and exports. The imports have been greater than the exports, and consequently more money is going out than is coming in. When studying this aspect of the question a good deal of consideration must bo given to the motor car, which now occupies a sufficiently important place in modern life to bo a factor in disturbing the balance of trade. There is the: capital loss of the car, to which must be added running oxpenses, including tyres and petrol, and finally repairs and accessories. These absorb a considerable portion of surplus incomes, which bofore the- motor car came on the scene was available for investment, and was usually placed on mortgage. Large sums of money lately have been invested in blocks of suburban land mirchased for subdivision, and this also may have had an appreciable effect on the total* sum available for investment when the question 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 indirect touch with land owners and'lenders, stated that he believed that some large investors of money, anticipating the accession of tho Reform Party to power, refrained 'from investing, with the hone that the rates of interest would rise. They thought that there would not be quite so much money available in tho Advances to .Settlers and Advances to Workers Departments; that . there would be a greater demand for t>ri-vate-mohoy j and that the rates would increase by perhaps \ or 1 per cent. Just now the Government lending departments are restricting their loans 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 bo more than temporary.