FINANCIAL CONDITIONS,

Waikato Times, Volume 116, Issue 19462, 29 December 1934, Page 5

FINANCIAL CONDITIONS,

ERA OF CHEAP MONEY. STATEMENT BY MR COATES. AUCKLAND, Saturday. The Minister of Finanoe, the Rt % Hon. J. G\ Coates, when discussing the cabled summary of the survey of financial and economic conditions, made by the Chancellor of' the British Exchequer, Mr Neville Chamberlain, sai'd ■that experience had shown that an era oif cheap money is one of the essentials of recovery from trade depression. Mr Coates/ said he heartily agreed with that aspeot of the policy being followed in Great Britain. Such a policy could not fail to benefit New Zealand 'directly in -so far as loan conversions were concerned, and indirectly in so far as it was instrumental in promoting trade recovery. Mr Coates pointed out that a similar policy was being consistently followed by the Government in New Zealand. As a result Government and local body ■securities had been established at •lower-rates of interest, and bank rates and deposit rates generally, had been brought down to a low level- “ There remains, however, one large field in which a comprehensive stabilisation of finance has not yet been achieved, and this is the field of mortgage finance,” continued Mr Coates. “'However, tills is the mduler which is to receive attention when the session of Parliament is resumed in February, and it is anticipated that farreaching results with follow from the passing ol‘ the legislation far the establishment of a mortgage corporation and the rehabilitation of farmers’ finance-”