BRITISH FINANCE AND TRADE.

Wanganui Chronicle, Volume L, Issue 12501, 30 April 1910, Page 5

BRITISH FINANCE AND TRADE.

SUDDEN MONETARY STRINGENCY

ACTIVE STOCK MARKETS

(From "Mercantile Gazettes. Snecial

Correspond ent.)

. LONDON, March 18. '' The unexpected has happened,, and. instead of a fall in the official ißank ; rate we were yesterday informed:., by the central authority that its minimum discount rate was raised from 3 per cent, to 4 per cent. This; of course, is the accumulative result- of the'"--tan-gled ■• condition of-our national finances,, consequentiipoii there still being no Budget for last year,, and the outflow .of gold to Paris ; and to India. The position is altogether unusual. . At' this time of the year we should be. receiving gold and not parting with it. To tlie corresponding*date, of last yeay there was an influx of over £4,000,000, but since the commencement .of the current twelve months we have lost about £4,500,000. Owing to these facts the reserve of the Bank has shrunk to about £25-,00d,0G0 -instead of the £29,000,000 at which it stood at this time last year. For the time being the Government is nna'ncing the nation's needs by the temporary of Treasary bill issues'. This week the< emission of a fu&her £4,000,000 of these bills is announced, bringing up thes total; outstanding to* nearly £30,----000,000, Or just double the sum, outstanding a year ago. As issue succeeds issue the Government finds its borrowing increasing in cost, for whereas 2| pei" cent, was paid a week ago, the rate this week is over 3 per cent. The Treasury, returns make it plain that taxpayers have been in no hurry to pay the imports which they must ultimately yield unto Caesar, but which as yet, have-not been legalised. The current financial year expires on 31st inst., and, so far, the total revenue receipts have amounted to £123,786,000, or about £16,000,000 below the sum got in for 'the-similar period of cur last financial year. The Chancellor of the Exchequer lestimaxed for an aggregate revenue of £163,0001,000 during the present twelve months, so that there is still about £39,000,000 due to come in in the next thirteen days—almost an impossibility It is not easy to speak of the outlook. If the national finances were placed upon something like their normal level we should, no doubt, find the money market back in a. nataral >state, but on the p-.^esent occasion we have the condition of affairs of politics governing the money market after having first tyrannised over the Stock Exchange. There is much talk of "financial chaos" ■ to.'be heard just now in opposition quarters, but whatever blame there may be to apply, bow -parties in the State are entitled to a rr.oiety of it. The Peers have reduced the Government to more or less impo r fence, and the Government, fearing another appeal to the country, are determined if they are defeated, to let the Unionists clear up some of the mess they have bsen instrumental in creating. A' big Exchequer bond issue is coming, out . to-day, and just after Easter the market is looking for an issue of £1,800,000 of New Zealand 3| per cent, bonds'. " -,;