AUSTRALIAN BORROWING.

Auckland Star, Volume LVI, Issue 163, 13 July 1925, Page 7

AUSTRALIAN BORROWING.

LOAN IN NEW YORK. WHAT WALL STREET - SAYS, i I RESENTMENT IN LONDON. (By Cable.—Press Association.- Copyright.) (Received in a.m.) NEW YORK, July 12. The '"New York Times,"' under the heading "'Topics in Wall (Street," says: "Aside from its importance as a financial development, the Australian loan to be floated soon in New York is attracting attention because of the stimulus to United States trade it is expected to cause, while a large part of the funds to be raised here will be required for refunding purposes in Australia. The operation is likely to open up markets in the Commonwealth for many lines of American products.' . Considerable resentment concerning the American flotation is reflected fn London comment, as British capital has hitherto always provided for the financial needs of Australia. Apportioning part of it to New York ie now regarded as one of the effects of the British return to the gold standard, as it is felt that if London were to float a loan covering all Australian needs it would mean loss of gold by the Bank of England, now that the ban on the export of gold has been lifted. The teYms of the Australian loan are expected to be announced this week, with estimates, of the amount of the American flotations ranging from fifty to a hundred million dollars.— (A. and N.Z. Cable.) VAST SUMS AVAILABLE. COMMENT IN NEW YORK. NEW YORK, July 12. The "New York Telegram," in a leading article referring to the proposed loan to "our antipodean cousins, the Australians,"' says: "Regardless of what some nervous persons pretend to think, the bankers of the United States are desirous of finding solid substantial collateral security such as the credit of the Australian Commonwealth, upon which to lend their surplus funds. There is said to 'oe and undoubtedly is, a vast volume of money in the United States seeking just such investments as that proffered from Melbourne." The "Montreal Gazette," in a leader commenting upon the placing, of an Australian loan in New York, says that the action is not a matter of surprise, as Incw York has become a resort for international borrowers. Even before the war, Canadian Provincial Governments and municipalities went regularly there, for increasing sums needed and not readily obtainable at Home. During the war no other market was available. When peace came, gold supplies in European nations were exhausted and currencies depreciated. Only Britain has so far been able to re-establish its currency gold basis. In time, with the revenues it receives from investments in all parts of the world, Britain will accumulate reserves of sound money, which can be invested on something like the old scale at her own time. Its recovery is being delayed by labour troubles, decreasing production, and curtailing trade, while taxes are ■ kept high by its'"socialistic legislation, to whic'u even the Conservative Government adds. New York, on the other hand, seems to have an increasing amount of money for loans. Some conies from "profitable investments at home, and not a little from Britain, which is paying its war debts to the United States. Australia is goins; where others have gone, Canada included, for her money needs. New York has not replaced London as the world's money market, lint has won a place in the financial sun, and will henceforth lie a factor ,to be counted with when heavy national borrowings will be made.—(A. and X.Z. Cable.) FIVE PER CENT AT 98}£. LONDON, July 10. It is reported in London that the Australian loan was obtained in New York at 5 per cent, issuing at 984. — (A. and X.Z. Cable.) AN AUSTRALIAN VIEW. MELBOURNE, July 12. Dr. Earle Page (Federal Treasurer) declines to comment regarding the rumoured flotation of an Australian loan in America. He will neither deny nor confirm the report. Mr. W. Raws, president of the Associated Chambers of Commerce, states that a loan is the inevitable development of the present economic conditions. If America had lent the money it did not necessarily mean that trade would flow in that direction from the Commonwealth. Consequently there is no occasion for any sentimental regret that Australia was borrowing from America instead of from Britain.— (A. and N.Z.)