AUSTRALIAN LOAN.

Hokitika Guardian, 13 July 1925, Page 3

AUSTRALIAN LOAN.

[Australia A X.Z. •( a bio Association.. LONDON, .July 11.. It is rojiortcil :u Loudon tluit Go Australian loan is being ohLained ai New Vorl; at life pro cent., ami is Lome issued at !)S.J. CANADIAN PRESS COMMENT. OTTAWA. July 11. The •' Montreal Gazette" commenting editorially on the placing of ail Australian loan in New York, says : - "This action is not a matter for surprise. New York had Leconte the re-l sort for interna I inonal Lorrowers even Itefore the war. The Canadian Provincial Governments and Munieipalities went regularly there for 11 1<- increasiog still’s they needed, and, which were not readily obtainable at Home. Diiri nit; O’.c war no other market was available, ami when peace came the p;old supplies of the European nations were exhausted and their, currencies depreciated. Only Britain. so far. Inis been able to re-establish its currency on a. gold basis. In time, with the

revenues it receives, from investments in all parts of the world, IJritain will accumulate reserves of .sound money, which it can invest on something like the old scale. In the meantime, it. recovery is being delayed by labour troubles, which are decreasing production. ami curtailing trade, while taxes are kept high by its Socialistic legislation. to which even the Conservative Coveriimetit adds. New 'iork, on the other hand seems to have an inrroa--

ing amount of money to loan. Some comes Irom profitable investments ai Home, and not a little comes from Britain, which is paying its war debts to the United States. Australia is going where the others have gone, Canada included, for the money it needs. Now York has not replaced London atho world's money market, hut it has won the place in the financial sun. and henceforth New York will he a factor to lie counted with when heavy national borrowings are to be made.

AMERICAN POSITION. NEW YORK, July II

The ‘’New York Evening Telegram" referring to what it terms "the proposed loan to our Antipodean cousins, tho Australians,” says: " Regardless of what some nervous people pretend to think, the hankers of the Fnited States are desirous of linding solid and substantial colnteral. such as the credit of the Australian Commonwealth upon which to lend their surplus funds. There is said to be, and there undoubtedly is, a last volume nl money in the United States seeking just such investments as that proterred from Melboume.” SOME ISSIHCS ADVOCATED. LONDON, July 11. The “Financial News,” reverting to the Australian loan at New lurk, asks: “What should prevent an issue being placed here, and part o! the underwriting being olfercd to New York houses, or vice versa. This would lie decidedly preferable to a relusal to entertain the business in London. Ibis suggestion, doubtless, means a departure in underwriting practice, hut it is not desjaalile that the underwriting should lie modified, in order to lit closer with tlie international development of finance:’ New lorlc would have the benefit of the experience nl London issuing houses, and on the other hand, money could he invested safely and profitably through London channels. Under these circumstance*, there would be no need to put up any " bar.” LOXDOX, .July It). The "Evening Stauard says: The argument allowing the Australian Loan to be raised m London was that it would give the Commonwealth power to take gold if it desired, because the moiiev was required to meet maturing internal obligations. Iho gilt edge market is bitterly criticising the police of sending Australia to New York, as a display of weakness and supporters of the restoration ol ilie gold standard are running away at the firing of the first shot, instead of facing the consequences ol a tree gold market, even at a certain

amount of risk. THE LONDON PORTION. LONDON. July 12

The " Evening Standard ” understands the balance of the Australian loan to be issued, in London will be five per centum. The stock will he offered at SB\ or ninety-nine centum. The issue, probably, will not bo long delaved.

REFUSAL TO COMMENT. MELBOURNE. July 13

The Fcu.nnl Treasurer declines to comment regarding the rumoured floating of the Australian loan in America. He will neither deny nor confirm it. Mr W. Raws. President of the Assoeiateil Chamber of Commerce, declared the loan was the inevitable development of the present economic conditions. If America did lend the money it did not necessarily mean that trade would flow in that direction from the Commonwealth. Consequently, there was no occasion lor any sentimental regret that Australia was borrowing from America instead of from Britain. Then if it were not inevitable it would be preferrable that she should do this under existing conditions.