AUSTRALIAN CREDIT

Gisborne Herald, Volume LXVII, Issue 20186, 2 March 1940, Page 10

AUSTRALIAN CREDIT

POSSIBLE EXTENSION DEEMED GOOD RISK f PRIVATE BORROWING (Reed. March 2, 9 a.m.) NEW YORK, March 1. The Washington correspondent of the United Press of America says that informed circles express the opinion that there is a disposition to extend credits to Australia as far as possible within the law, due to general goodwill and the fact tha'C she is considered a good risk. The Neutrality Act bars long- term credits to belligerents, but does not affect private borrowers in belligerent nations. American money is being loaned fairly largely to other friendly Powers, for instance, China, Sweden, and numerous Latin American countries. Apparently loans to Australia would fall into the same category. An extension of credit might be the means of sustaining United States exports to Australia, while ordinary trade is disrupted owing to the war. United States banks have ample balances and in many cases are flooded with idle money and it is very likely that they would be willing to make finance available for Australia if the risk were regarded as good. ft is considered most unlikely, however, that the Export and Import Bank would participate, clue to Australia’s status as a belligerent. U.S. BANKS CAPITAL (Reed. March 2, 9 a.m.) WASHINGTON, Feb. 29. The Senate passed without any objection being raised the Export and tmport Bank Bill, increasing the bank’s capital by £25,000,000.