RAISING MONEY.

Hawera & Normanby Star, Volume XLII, Issue XLII, 14 October 1922, Page 10

RAISING MONEY.

LONDON LOAN MARKET.

FINANCIAL PROBLEMS DIS

CUSSED.

For the last eight years Mr. David 1 Fell formerly M.L.A. for Lane Cove t £»1r i?? shtly& Assembly of Ne-,v 1 South Wale*, has lived in England, < and has paid periodical visits to Ausl « traha. Returning to the Common- i we ™ recently he was interviewed by 1 a, Melbourne Argus reporter., and refemng to the question of raising loans < ™ + w° ni rV Fell said tnat ™ S ( one that should be considered by both »< the .Federal and State representatives. 1 it they desired to be completely sue- < cessful they should work in harmony < IQ endeavour to raise loans from the < outside public instead of through the ■ customary channels would, he thought, be a grave mistake, and would prob- ' ably lead to failure. "There is no necessity to go to the outside public," said Mr. Fell, "when it is known that the London County and Westminster- Bank, and other banks underwrite guarantee loans beI tore they are put on the market. Queensland went abroad and borrowed from _Amer JC a. It is doubtful whether it was wise. America, through iw If ffM wwra, at present favourably considers such loans It is possible, however, that as America requires more money to develop hei vast resources, Australian States seek-I ing loan moneys might have their ap-1 plications refused. No doubt from an economic and international point of £ eW: jt would be wise to have • the United States of America investing in Australian loans. To avoid jobbing • however, I would suggest that an aVrangement should be. made with Australia s financial advisers in England t* have the subscriptions for loans offered simultaneously in London and iYew York, the sine qua non being; that America would share with England the fluctuation of the world's money market.''

+ Th« repudiation in regard to the Queensland leaseholds/ continued Mr. Fell., "has led to the impressio^xn the mind of the investing public that Australia has -repudiated its loans—as these investors rarely dis criminate between any State or the Commonwealth. British investors incline to the view that whatever difference of opinion may exist iri regard to legislation, it is a grievous fault to transfer the controversy to the London financial market, as it affects the credit ot the States generally, <and of Australia as a whole. Queensland has been forced into the American market which may, or may not, stand, by that mate in case of necessity. Th e Brit ish underwriters, apart from financial advantages, are also influenced by the traditional sentimental relationship with the outlying parts of the Empire. 7' .

.Referring to the question of exchange, Mr. Fell expressed the opinion that as far as Europe was concerned there was no immediate prosDect of an improvement until the nations bee^ me, s*ablW. "In other words," added Mr. Fell "the nations will have to work out their own economic salvation While the exchange conditions affect Great Britain seriously it must he .remembered that London is the financial clearing-house or pulse of the world, and, as far as Western" civilisationis it is not likely aJi? &spla.oed 80 long as she retains a reasonable lead m her marine service and has the co-operation of her Dominions. ' ~ fl,^Wi^ reg-rd ¥ the extraordinary flu.^ uations in the German mark" said Mr. Fell, "it is rather difficult to offer an opinion, as there are many psychological currents affecting ft ±rom my own personal knowledge the Germans are working hard,, and, 'havmg the advantages in exchange her manufacturers are obtaining trlde or ders throughout the world. Why is ?™ Jfe apart from Germany can produce much cheaper than the victorious nations? The, answer is that is working solidly to may be a factor; but whether wales —skilled and artisan—is li v i n2 at a reasonable standard of comfort, an | in any other part of the world."