GO TO NEW YORK.

Hawke's Bay Tribune, Volume XVII, Issue 207, 16 August 1927, Page 4

GO TO NEW YORK.

COUPLE of messages We had yesterday lend fresh colour to the suggestion made some few weeks ago that Australian Government financiers are on the eve of establishing closer relations with New York. One of these came from the American financial centre itself and, incidentally, had reference to the possible establishment there of an agency ot the Commonwealth Bank. The other came from Auckland and gave us something of what the Premier of Queensland had to say during a few hours off there on his way back from money-seeking visits to both London and New York. Among other things, he expressed the opinion that "both Australia and New Zealand would be well advised to secure each year n portion of their oversea financial accommodation from New York and thus ease the strain on the London market.” Evidently this conclusion hns been reached as the result ol conferences with London financiers, who see not only a difficulty in filling all colonial demands for fresh capital, but also, in the course suggested, a means of easing the problem of exchange in connection with the payment of Britain’s war-debt t<> America.

Almost nt the same time as these messages reach us we have Australian newspaper comment that points : n the same direction. These show that most of the Australian States Governments are in need of additional loan money in order to finance public works to which they are committed. Recent local applications for subscriptions to over-the-counter issues of securities have elicited, in some instances, notably inadequate responses on the part of investors, and it has long been foreseen that it will be necessary for the Commonwealth Loan Council to tap overseas sources, early in the new financial year—which there commences on Ist July—for a loan, the proceeds of which Would be apportioned between the States in need. The fact that the Commonwealth Government’s financial adviser in London is going to New York at an early date lends support to the supposition that that city may bo made the centre for another Australian loan flotation. It is thought probable that this gentleman’s visit to New York may be

made to synchronise with that or Mr. H. T, Armitage, the deputygovernor of the Commonwealth Bank, now, as the New York cable indicated on his way to San Francisco. With regard to the mission of Mr Armitage the acting-chairman of the bank has explained that nothing definite has yet been decided on the subject of the establishment in New York of t> branch or an agency of the institution. If the board should decide ‘o establish either the chief object would be to facilitate the flotation of loans for Australia, and not to embark on the conduct of ordinary banking business in the United States. Whether New Zealand will be given a hint from London to follow Australia’s example remains to bo seen. It is, however, to be hoped hot.