BUOYANT BANKERS

Evening Post, Volume CV, Issue 24, 30 January 1928, Page 12

BUOYANT BANKERS

U.S. AS LENDER CANADA'S FAVOURED POSITION (United Press Association.—Copyright.) LONDON, 28th January. During the last few days the Big Five banks have held their annual meetings, and the chairman at each meeting delivered the usual review of the financial and trade position. It is gratifying to note that all of them were bearers of tidings of comfort and joy. Rarely, if ever, has there been such a consensus of optimism. Ona of the financial newspapers hits it off thus: "In a chorus with no discordant note, though with slightly differing emphasis or caution, they tell us that trade has revived, is reviving, and seems likely to continue to.revive." T.i.'s optimism is reflected in the "Economist's" monthly review of the stale of trudu, which bliows that there is general improvement in the unemployment position, und while the average wage rates lcmaii stationary, the cost of living has declined seven points compared with December, 1925. In other words, real wages have risen. These facts show that the Htiite of trade has improved and such indications as are available suggest the prospect of a continued movement in this direction. Interest has been aroused here by the news cabled from New York that negotiations are in progress there for an Australian loan of eight or ten millions sterling. Discussing the subject, the London representative of an important American banking group referred to the increasing popularity of Australian loans in the United States, where an enormous amount of capital is awaiting investment. He pointed out, however, that Canada was at present able to borrow there much more cheaply than Australia. He asked: "What Canadian loan there is yielding the investor 4.46 per cent., whereas Australian fives give the investor 5.13?" Canada's advantage undoubtedly, to some extent, is due to her geographical position, but this authority is inclined to believe that Australian credit in New York'could be raised to at least a 5 per cent, basis, and in course of time to 4%. In order to do this it would be necessary to create an increased demand for bonds by advertising propaganda; and also by getting them made trustee securities in all the American States. At present Canadian bonds are trustee stocks in all the States, but Australians have not this advantage, except in two or three.