THE LONDON MONEY MARKET.

West Coast Times, 29 January 1914, Page 4

THE LONDON MONEY MARKET.

UNUSUAL BUOYANCY COX TINUES.

[PEE PBEBS ASSOCIATION .—COPYRIGHT.}

LONDON, Jan. 27

The stock markets aro buoyant. Consols aro at £74 12s 6d. The New South Wales sefip is quoted at £3 2s lid premium. STATEMENT liY THE PRIME MINISTER. WELLINGTON, Jan. 25.

The easing of the London money market, and its probable effect in New Zealand, were dismissed by, the Rt. Hon. W. F. Massey, in a statement he made to a reporter yesterday. “The drop in the rate of interest which has recently taken place id London,” said Mr. Massey, “will he as welcome in New Zealand as in many other countries of the world, for the very simple reason that when money is dear it London it is correspondingly dear in every, borrowing country which requires money for development or other purposes. For the last eighteen months money in London lias been much dearer than usual, and consequently as w:e depend to a great extent on London, the rate of interest went up here. Now that the rate of interest ■n London is likely to got back to normal, wo may expect a corresponding reduction in this country, and I bclioro there will ho a reduction.

“I think it is well known that the New, Zealand Government have very heavy liabilities to meet during thn present year in the way of paying off a huge accumulation of short-dated debentures, a legacy which came down to us from our predecessors, and naturally we are pleased at the change for the better, which has taken place, and hope it will be a. lasting change. That we could have got the money we require goes almost without saying, because the credit of New Zealand is good, but the effect of the lower rate will be felt by local bodies, by; settlers, and indirectly by every class in the community. I do not expect that the rate of interest will fall to what, it was, say, between 1805 and 1000, hat judging from present appearances, I quite expect that money will he readily obtainable in London at four per cent- net, or perhaps less, and if so, wr should soon get back to live pc cent, as the ordinary mortgage rate oh good securities in this country.

“We must not forget in connection with financial matters that wo are experiencing a good season, with good crops of cereals, plenty of grass for stock, and good - prices for. our exports, so that from almost every point of view the outlook is good, and our. prospects satisfactory.”