Manawatu Daily Times MONDAY, JULY 13, 1925. “Uncle” Sam.

Manawatu Times, Volume XLIX, Issue 2730, 13 July 1925, Page 6

Manawatu Daily Times MONDAY, JULY 13, 1925. “Uncle” Sam.

Not many moons have passed since patriotic Australian politicians shed crocodile tears over what they termed the traltrous action of Queensland's Labour Prime Minister in going- to Now York on a money-hunting expedition after the London financiers had demanded what he considered to I bo unfair terms. Now these same* politicians are treading- the same path to the same money-lender’s door, and only the mildest protest is being offered. As a final touch all wo need is the announcement that while the Finance Minister of this most British of all Britain's possessions was seeking health in {America ho also arranged a little matter of a few millions with Messrs J. P. Morgan and company! The whirligig of time works wonders in cur viewpoints of men and things. ;And no one now sees anything more strange in British Dominions going to “Uncle” Sam than 'n that mythical gentleman looking beyond the domain of the stars and stripes for profitable investments for his surplus gold. A Great Change. In pre-war days an English financial authority visiting America wrote that “one thing about Wall street which strikes the casual visitor is its purely American character. It takes no interest whatever in European securities." That has long since been completely changed. Before the wir so great was America's demand for new things that the entire volume of its fresh capital and a rather largo amount from abroad were required to finance its domestic enterprises. Now the surplus of income over expenditure is remarkably large and widespread, and investment funds are being subscribed to by an extra ordinarily wide range, of persons in the States. Americans bulked largo In the Austrian reconstruction loan subscriptions. and even larger in the Japanese loan, and in both cases approximately half the amount taken was by persons who Invested SOOOdol or less. Investment ,ln short, Is becoming an American habit, andean investgatlon of rejoont records suggests that there will be an abundance of investment funds

available in the United States, and that gradual increase may be looked for in its share of the world’s financing. Skimming The Cream. |A recent report from New York states that just now it appears to some Americans that the cream of European financing has been skimmed, and that American bankers are searching for Issues that can be offered to an expectant market. The hope Was expressed that In this search ways would be found of making use of British experience. The suggestion was made that, through association with British bankers, American bankers might be able to participate in profitable foreign business. The message concerning the propose Australian loan suggests that a practicable method of co-operation r have been found, since the loan may be floated both in London and Now York, a course that appeals to such a stubbornly British journal as the "Financial Times." If this be so, Britain's Inability to provide funds t<r moot colonial Governments’ demands is further evidenced, and she Is evj* dently directing, doubtless with some reluctance, an old customer to a new firm. Of Australia’s present need there cannot be much doubt, and it la to Britain's interest that this need should be supplied. Britain’s growing reliance on Empire trade to make up for declining Continental markets postulates a state of prosperity in her dominions to enable them to absorb her offerings of manufactured goods. Financial stringency in the dominions would have an unfavourable reaction in Britain. Hard-up Australia. And there are self-confessed indications that the prosperity which has blessed Australia for the last decade is now on the wane. In a recent issue a prominent Melbourne dally paper drew attention to some of the symptoms—tile increase of unemployment, slackness in building in marked contrast with the recent boom, the largo number of suburban houses to let, and a pronounced tightening of tho purse strings by the banks to prevent speculation. The raising of loans locally was also mentioned as having accentuated the dullness of trade, ana it appears as though the Introduction of fresh money was felt to be Imperative to keep things moving. Public extravagance and private recklessness arc complained of, the details of the increasing public expenditure being described by the organ as "enough to murder sleep," though no Government gave any practical proof of a desire for economy. New Zealand will waU’ with interest this Australian experiment and no doubt Downie Stewart will have something to sa> about it.