“UNCLE” SAM

Manawatu Times, Volume XLIX, Issue 2730, 13 July 1925, Page 7

“UNCLE” SAM

Floating The Australian Loan BRITAIN WILLING TO SUBSCRIBE. “OUR ANTIPODEAN COUSINS.” [By Electric Cable —Copyright.] [AUst. and N.Z. Cable Association.] (Received Sunday, 7 p.m.) LONDON, July 11. The "Financial News” reverting td the Australian £29,000,000 loan in New York, asks: “What should prevent an issue being placed here and part of the underwriting offered to New York houses or vice versa? . This would be decidedly preferable to a refusal to entertain the business in London. The suggestion doubtless means a departure in underwriting practice, but is it not desirable that underwriting should be modified in order to fit closer the international development of finance, New York would have the benefit of tho experience of London issuing houses and on tho other hand money could be invested safely and profitably through London channels. In these circumstances there would be no need to pu! up any "bar.” PLACE IN FINANCIAL SUN. NEW YORK COMES INTO ITS OWN. (Received Sunday, 7 p.m.) ■“ OTTAWA, July 11. The "Montreal Gazette,” commenting editorially on the placing of the Australian loan in New York, says; “The action is not a matter for surprise. New York has become the resort for international borrowers. Even before the war the Csmadian Provincial Governments and municipalities went regularly there for increasing sums needed and not readily obtainable at home. During the war no other market was available and when peace came the gold supplies of the European nations were exhausted and their currencies depreciated. Only Britain so far has 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 Britain will accumulate reserves of sound money which it can invest on something like the old scale. Meantime its recovery is being delayed by labour troubles, decreasing production and curtailing trade, while taxes are kept high by its Socialistic' legislation which even the Conservative Government adds. "New York on the other hand seems to have an increaqfrg amount of money to loan. Some comes from profitable investments at Home and not a little from Britain, which is paying its war debts to the United States. Australia is going where others have gone, Canada included, for the money It needs. New York has not replaced London as the world’s money market, but has won a place in the financial sun and henceforth will be a factor to be counted with when heavy national borrowings are to be made.” AUSTRALIA A GOOD INVESTMENT. - (Received Sunday, B.3 jr p.m.) NEW YORK. July 11. The "Eveni|g Telegram” referring ta the proposed loan to “our Antipodean cousins, the Australians.” says: “Regardless of what some nervous people pretend to think, bankers of the United States are desirous of finding solid and substantial collateral such as the credit of the Australian Comomnwealth upon which to lend their surplus funds.

There is said to be and undoubedly there is a vast volume of money in the United States seeking just such investments as that preferred from Melbourne."