N.Z. MONEY MARKET.

Timaru Herald, Volume XCVI, Issue 14912, 3 December 1912, Page 4

N.Z. MONEY MARKET.

EFFECT OF P.O. SAVINGS BANK. The season's produce, says the 'N.%. Trade lU:viCj\y, is coming i'onvard for shipment/ in good volume, and prices .generally continue satisfactory, very good prices have been paid for wool at the opening sales of the season, an advance, of Ad to 2d being reported, as compared with a. yeav ago, a no! this, if sustained, would moan an increase of about a mil don on the season's clip. Against this, however, dairy produce and hemp values have defined, but it is hoped that thes.? will recover later on. A good lambing season has been experienced, and, according to the Government estimate, the rate is about 92 per CKnt. Prospects, therefore, are very salisfnclory, and at the end of the season the returns of exports .should show a high total. iVioney continues somewhat tight all round, and appears likely to remain so for the present, hut the position should improve when the returns come in from the realisation of our exports. The heavy total of deposits in the .Savings Bank has undoubtedly a decided effect on the local money market, as this institution has attracted a considerable amount in deposits. The total to credit of depositors in the Post Office Savings Bank at the end of September was £15,010,841. The excess of deposit's uver withdrawals in tiia nine months of the year to end of September was £307,0-54. Commenting on the business of this department of State the ."N.Z. Trade Keview" says:—'-This institution has made great fjtrkios, and during the last twelve years the total to credit of depositors hasfullv trebled. The wisdom of the Government taking so much money from circulation or investment in ordinary channels is questioned by many financial authorities, especially in view of the large proportion of it being invested in the Government's own debentures. The total, security held by the Department at 31st .March last was £15,865,022. of which £936,200 was invested in debentures of local authorities, £71.390 in stocks of other Governments, and the balance of £14,858.332. in N.Z. Government securities. The average interest received on these investments would be n shade under 3J per cent. £11,433,354 bears interest at 3£ per cent., £'2,290,695 under 3£ per cent., a.nd £2,141,873 at over 31 per cent. No doubt, however, the Government finds it very useful to get all this money- a* this rate, still it might bo better for the country if the money were to circulate through the ordinary channels of investment."