LOWER INTEREST RATES

Taranaki Daily News, 5 September 1935, Page 7

LOWER INTEREST RATES

POSSIBILITY FORESEEN REVIEW BY MR. j. G. COATES. MUCH MONEY FOR INVESTMENT. IMPORTANCE IN FARMING COSTS. By Telegraph—Press Association. Wellington, Last Night. The opinion that in future interest rates might become even lower than tjiejr present leyel was expressed by .h Minister of Finance, the Rt, Hon- «L GCoates, in the House of Representatives to-day. The Minister’s statement was made in reply to a question by Mr. J. N Massey (Co., Frankton), who asked whether in view of the importance of interest rates in relation to farmers costs the Minister' could give an indication of his recent inquiries in other parts Qi the world as to the future trend of interest rates. . At the Ottawa conference in 1932, Mr. Coates stated, the British Empire made a common declaration of policy in support of long-term loan interest rates and undertook to foster whatever steps were necessary to firing such a policy to sueccssful fruition. In. 1903 at the end o+ the world economic conference British and Dominion representatives reiterated their intention to do everything possible to establish low rates for long term money. “Inquiries I have made recently m various parts of the world show that not only has th© British Empire policy been successful but that it has been followed by many other nations," said Mr. Coates. “The pressure of money seeking investment is such that a great deal of world stability is necessary before any continuous trend upwards is visualised. Short term money throughout the world is at remarkably low levels and it is becoming apparent in most places that the rates for long term money invested in sound securities are coming more closely into conformity with the low short term rates.

“Some authorities consider interest rates may go lower yet.”