IN AMERICA

Evening Post, Volume C, Issue 86, 8 October 1920, Page 10

IN AMERICA

INTERESTS OF THE PACIFIC

COL.BURXS'S OBSERVATIONS.

Colonel Sir James Bums, head of Burns, Philp, and Co., arrived in Wellington from the United States, whence he oomes via China and Japan. He is returning to headquarters in. Sydney. In the course of an interview given to The Post, Sir James Burns, replying to the prospects of Australian States raising money in America, said he did not think it would, be advantageous for them to do so. The London market might not be propitious, "but so far as my experience goes," he added, "the interest rates in America are much in excess of our ideas. On ordinary accounts from 7 per cent, ■to 8 per cent, is the rate. I feel sure, too, that American financiers, even if they were inclined to lend money to Australian Governments, would take, very good care that they had good' grounds for doing co, and a full and absolute security for their funds. It is much easier and much to he preferred that Australia should provide its own funds from within."

Touching on the future of the money market, Sir Jameis said it was exceedingly difficult to forecast anything through the present state of chaos everywhere. "There is no doubt in my mind," he went on, "that the whole monetary position will gradually become stabilised. Americans are hurtingi their own trade to a, very great extent by the adverse rate of exchange so fax a.s ib affects us, if they are responsible for the present exchange position. They are realising it, too. Of couTse it is very hard to say whether the exchange position can be so detrimental to British jnterests as it appears during the past six or twelve months. Naturally merchants are sending as few orders as ttay can to America, with a rate that is roughly equivalent to 14s in the £1."

The Jones Shipping Bill was then referred to by Sir James. "If it comes linto force, as they say it will, on Ist January next, it will seriously affect Iboth British and Japanese shipowners, and they will certainly retaliate. There is a good deal of talk in Japan that the .shipowners there will.force their way .into the South American trade if the Jones Bill becomes law. Not only into iSouth American ports, but elsewhere. It would be a very great pity if this Bill is given effect to. Many Americans are coming to that conclusion., too. Personally, I think the provisions of the Bill will be much modified before it is tput into operation. It could only create "irritation and grave unsettlement in the shipping world if it were 1 to operate in its present form." ' •

Sir James foresees great shipping developments in the Pacific. Already ifchcre were between SO and 60 large vessels engaged in the Pacific trade hef ween Ja.uaa, China, and the main Western Coast ports of America. The ■Nippon Yusen Kaisha intends re-estab-lishing direct services to New Zealand. The former service was interrupted by (the war.