REASON FOR EMBARGO.

Press, Volume LXI, Issue 18516, 19 October 1925, Page 10

REASON FOR EMBARGO.

v . CHECKING DRAIN ON •- RESOURCES. (ATJSTEALIAH AKD H.Z. CABLS ASSOCIATION.) (Received October 18th, 5.5 p.m.) ■ LONDON. October 17. The diplomatic' correspondent of the '/Daily. Telegraph." - states that wijtli the decline of the trade balance on the; one hand and the" conditions of stringency created ;by the return to • the gold standard on the other, it was agreed between the Treasury and the f chief bankers that the drain ou the country's financial resources by con- ' stant foreign loan issues in London should be checked. The banks conseouentJy took' their own concerted measures to stop the efflux of British money ■to Europe ftiid by declining to iissue any niore.'Toreign or Dominion loans. Thus, when Australia expressed a desire to issue a loan here, she was advised to raise it in the American market, which was suffering from an overflow of resources. For the same reason the Belgian Government is not finding it easy to secure a JPrhfsh "for stabilisation" loan. x It is suggested that the Dominions,at any rate, should receive, from the British banks • preferential treatment an against foreign competitors. It is certain, however, that if and when the city banks, in an informal consultation wSth the, Treasury, decide to remove or curtail restrictions on foreign loans, those for the Dominions will be raised ■;' at the sametime.