LOWER BANK RATE NEEDED

Taranaki Daily News, 23 May 1928, Page 11

LOWER BANK RATE NEEDED

HON. YOUNG SEES JUSTIFICATION (By Wire —Special to News.) Auckland, Last Night. A reduction in the bank rates was advocated by the Minister of Health, the Hon. J. A. Young, when speaking at the opening of the advertising exhibition to-day. “I hope the bankers will see the necessity before long for trusting us with lower rates of interest,” he said. “When they can see their way to do that financial conditions will be made a little more attractive to the farmer and business man than they are to-day.” The Minister said that lower rates were justified by the improvement in the export trade, the buoyant state of the British investment market and the signs of returning prosperity in the Dominion. "It is gratifying to note that a healthier tone is prevailing in the community,” he said. “When t'he balance of trade goes against ns, as it did to the extent of £3,000,000 in 1927, we are looking for trouble, but 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 financial operations in London. The New Zealand Government’s last loan of £5,000,000 for development purposes wae fully subscribed when the office opened for business at 11 a.m., and seven times over-subscribed when the offices closed the same day. That pointed to an abundance of money in the Old Country, and was a magnificent compliment to the Government and people of New Zealand.