U.S.A. BANKERS

Hawke's Bay Tribune, Volume XVII, 1 October 1927, Page 5

U.S.A. BANKERS

EAGER TO COMPETE FOB COMMONWEALTH LOANS. INFORMAL PROTEST TO PREMIER. [By Cable — Press Assn. — Copyright.] (Received 1, 11.40 a.m.) New York, Sept. 30. It is understood that so great has been the dissatisfaction among at least three banking houses here over the fact that they were not given tho opportunity, to tender for the last Commonwealth loan that an informal protest has been sent to the Hon. S.M. Bruce and the Commonwealth Bank at Sydney, intimating: • ‘lt would have been to the advantage of the Australian Commonwealth it its representative had conferred with the several groups of influential bankers ui order to obtain the best tanns " ihe point is also made that if this had been done a wider distribution of Australian securities would nave resulted in the American market avoiding the congestion ol’ such securities wiueh occasionally occurs iu LonUom Geneially speaking there is wide agreement that the lean was a success and the return to Commonwealth high, out it is insisted that the var ious banking groups were so ready to compete for tbe honour of floating first loan of Commonwealth issue in America that the usual underwriting uud commission fees, totalling four per cent., would have lieoil reduced to as low as two per cent. Banning circles agree that the underwriters who floated the loan are of the highest reputation and the Commonwealth position is strengthened thereby, but they point out that the other bankers who desired to bid are also of excellent standing, and that the financial arrangements existing between the Commonwealth Bank und its affiliations in America tend to throw Australian floatations to one group here.—(A. and N.Z.)