A DOLEFUL PROPHECY.

Gisborne Times, Volume XXVI, Issue 2189, 13 May 1908, Page 2

A DOLEFUL PROPHECY.

HARD TIMES IN STORE FUR NEW ZEALAND. AN OMINOUS NOTE. (Press Association.) CHRISTCHURCH, May 12. The “Lyttelton Times” states this morning that there is a very strong feeling amongst financial men in Christchurch that the remarkable prosperity ,which New Zealand has enjoyed for fifteen, years will receive a check, and-that the check will come before the end of this year. Tliere -is, no doubt that the banks are feeling the strain of the tightening of -tlie money market, and the sum's of im-oney that they have to lend have been greatly restricted. It is known that in some cases they have asked good,' clients with- excellent- security to help, by leaning upon them' as little as -possible. One Christchurch financier, who notes all the tendencies of the money market, says that the Dominion will have some fairly stringent times before it is much older. He believes that the full force of the change will he felt ini -four or five months, and then, he says, “We will go through comparatively hard times for a year or so.” While he is convinced that there will be a temporary check, he sees no reason why' the Dominion should not- get back into good' years later on. He places confidence -in the North Island, where large areas of Maori land will he opened up. He does not know how long it /will take to open up those lands, but he thinks that it should be done soon, and that when the operation is complete, and settlement is given- an impetus, there ought to he a return of the old prosperity. -In the meantime, he says that individuals will suffer, and amongst -these there will probably be some land owners. 'During the ■fifteen' prosperous years, many land owners who were once in -poor circumstances, have made their position good ; they 'have paid off their mortgages, and in -some cases have have saved money. They will not ''be greatly affected, but those who. have •bought land during the -past six months at-valuations based oil the high prices for 'wool, will suffer, and amongst these there may ho included men with limited means, who have taken- up sections opened' for settlement by the Government. It is expected that a, slight- -fall in the value of land in the cities will also take place.

According to the “Mercantile Gazette” tho comparatively slight tightening of the ba.uk -rate of interest 1 that -lias alien place, has already /affected property. Land agents state that sellers are forced to -accept lower rates than formerly, and they find it much harder to bring about a sale than they did twelvc”mdnths ago. There seems to be no means of averting tho stringency, as there is not sufficient an-oney available for the hanks operations, and there is strong opinion- that -if the Government went to the London market inst now it would’ get -a rebuff.