MARKET BAD

Evening Post, Volume CX, Issue 10, 11 July 1930, Page 9

MARKET BAD

NO LOAJtf FOR AUSTRALIA LONDON, 2nd July. Financial circles aro most surprised at reports from Australia, that Sir Otto Niemeyer's visit is connected with a tentative agreement whereby Australia, will agree not to raise a loan outside England for three years, tho Bank of England guaranteeing interest and sinking fund on existing loans. Those connected with Australian finance say they have not hoard even a. possibility of such au agreement, though it is thought possible that efforts will be made to arrive at some such understanding. Though tho position is* improving, conditions are still against raising an Australian loan in this market, suggesting the need for an arrangement to carry over commitments for a considorablo period. A proposal is being examined for pooling credits on all Australian banks in London, lirst meeting Government commitments and then from the remainder of the resources, rationing general financial needs —this as a pormanent basis of financial stability. It is suggested that without some such rationalisation crises aro| bound to recur. {

The Commonwealth needs something approaching £50,000,000 in London to meet interest and other commitments until the end of 1931. The Bank of England is at present financing London requirements through the pomiuoa-