AUSTRALIAN LOAN

Manawatu Standard, Volume XLV, Issue 190, 16 July 1925, Page 7

AUSTRALIAN LOAN

NEW SOUTH WALES DECISION. WILL NOT PARTICIPATE. (By Electric Telegraph.—Copyright.) Received July 10, 10.10 a.m. SYDNEY, July 1.6. Dir Lang, Premier of New South Wales, announced that the New South Wales Government would refuse to be a party with the Commonwealth Government to the suggested loan from America.

He says it will lie time enough to consider going to New York when he finds London closed to him. Mr Lang considers that the stringency now being experienced in London will pass off and that it would he a mistaken policy to break the long tradition of Australia’s financial connection with London on account of a temporary difficulty that may disappear a few months hence.—Press Association. DEFINITE NEWS DESIRED. Received Julv 16, 8.5 a.m. LONDON, July 15. The Financial Times says that definite news in connection with tho Australian loan is eagerly awaited. The impression is genera! that £5,000,808 oi five per centum bonds, at 98J; will he offered on the London market at an early date.—A. and N.Z. cable. AMERICAN EXPECTATIONS. Received Julv 16. 8.5 a.m. NEW YORK, July 14. Wa 11 Street expects a definite announcement regarding the loan to Australia before July 10. It is understood that the public offering of bonds will he made on July 17 or July 20. Latest estimates of the size of the loan to be floated in New York are 75 million dollars, while a simultaneous offering of £5,000,009 of Australian bonds will be made in London. It is understood that the bonds hear five per cent, interest and are priced at par.—A. and N.Z. cable. TRADE WILL FOLLOW LOAN. AUSTRALIAN TREASURER’S ADMISSION. Received July 16. 10.55 a.m. DIELBOURNE, July 16. Influential authorities state that the London market is distinctly hostile to the Dominions borrowing outside of Britain. This, it is stated, is had for tho prestige of London as the financial centre, and also for British trade, as America will lie sure to see that trade follows the loan.

Dr. Earle Page (Federal Treasurer; in the House of Representatives, admitted that a cable to this effect had been brought to the notice of the Government. It was not practicable, added Dr. Page, for the Government to cause to be issued consols or stock to the present holders. Loans amounting to sixtv-six million pounds were falling due in December. At the present rate of interest Australia could not find all the money necessary to comply with the agreement made by the Federal Loan Council to meet its requirements, nor was it possible to cause all such loans to he raised in Australia to obviate borrowing on the London market.—Press Association.