PERIOD OF CHEAP MONEY

Taranaki Daily News, 29 December 1934, Page 7

PERIOD OF CHEAP MONEY

ESSENTIAL OF RECOVERY POLICY OF BRITISH CHANCELLOR. NEW ZEALAND MINISTER AGREES. RESULTANT BENEFIT IN DOMINION. By Telegraph—Press Association. Auckland, Last Night. Concerning the cabled summary of the survey of financial and economic conditions made by the Chancellor of the British Exchequer, Mr. Neville Chamberlain, the Minister of Finance, the Rt. Hon. J. G. Coates, stated at Auckland to-day that past experience had shown that an era of cheap money was one of the essentials of recovery from trade depression. He heartily agreed, Mr. Coates said, with that aspect of the policy being followed in Great Britain, which could not fail to benefit New Zealand directly insofar as loan conversions were concerned and indirectly insofar as it was instrumental in promoting trade recovery. Mr. Coates pointed out that a similar policy was being consistently followea by the Government in New Zealand and as a result Government and local body securities had been established at lower rates of interest, and bank Yates and deposit rates generally had been brought down to a low level. “There remains, however, one large field in which comprehensive stabilisation of finance has not yet been achieved, and this is the field of mortgage finance, continued Mr. Coates. “However, this is a matter which is to receive attention when the session of Parliament is resumed in February, and it is expected far reaching results will follow from the passing of legislation for the establishment of a mortgage corporation and for the rehabilitation of farmers’ finance.