HEAVY BORROWING

Bay of Plenty Times, Volume LXVII, Issue 12801, 24 July 1939, Page 5

HEAVY BORROWING

LOANS IN LONDON I ZEALAND CONVERSION PROSPECTS rritisji trade issep: London, duly 21 Dominated by the prospect of the Governrnentjsjjjmvy SSTfilled to portioiiouo in the SSJIMM .pan wHtdi othov seeHonS of the stock markets staged un,pr the stimulus of the more hopemi international news. f The new issue market is still unImive t,!) per coni, of a £ 2,000,SBu.lan loan loft 'oitl, tl,e ar>rwriters, v/hh‘h is not a bright augury for the Xmv Zealand loan according to Mr WalV'lsh are “proceeding satisfactorily ” but the nature of the Imran he will bo able to strike with m--sJtors remains to be seen. Ihe m y considers that Mr Nsah so far cot rather the best of the discussions. His assurances fall short of those that industrial circles cleSir rommenting editorially, says the independent Cable Service, The Iffpoints out that the White paper issued yesterday on the grantf y of £0,000.000 credits to New Zealand takes notice of-the reassurances given hy Mr Nash in regard to HP application of the licensing sysL m which amount to a declaration that British trade to New Zealand will continue to enjoy the advantages stipulated at Ottawa, although Ottawa is not mentioned. The assurances are not new, the journal adds. They were given orieinally by Mr Savage, and are reiterated by Mr Nash. “Their incorporation in the joint memorandum, “The Times" continues, * may be regarded as an attempt to save the spirit of the Ottawa Agreement, while not protesting against violation of the letter.” The “Daily Express says New Zealand should have been given more. It welcomes the first instalment of a policy of lending to British coun- - tries instead of squandering funds abroad. The mounting total ot export credits is expected to be further swollen in the next week or two by the completion of the Polish negotiations, which have reached only a temporary deadlock owing to the Treasury’s insistence that a precedent should not be created by spending the credits out of Britain. The Chancellor, of the Exchequer will have to finance at least £ 350,000,000 by a bond issue. City opinion favours October as the time and short medium maturities as the method.