New Zealand’s Nine Million Credits As London Sees Them.

Northern Advocate, 22 July 1939, Page 8

New Zealand’s Nine Million Credits As London Sees Them.

(Received 1.30 p.m.) LONDON, July 21. JQOMINATED EY THE PROSPECT OF THE GOVERNMENT’S HEAVY BORROWING PROGRAMME, GILT-EBGED AND DOMINION ISSUES FAILED TO PARTICIPATE IN THE SHORT-LIVED SPURT WHICH OTHER SECTIONS OF THE STOCK MARKET STAGED UNDER THE STIMULUS OF THE MORE HOPEFUL INTERNATIONAL NEWS.

The new issue market is still unreceptive, 60 per cent, of a £2.000,000 Sudan loan being left with the underwriters, which is not a bright augury for the New Zealand loan conversion.

Mr Nash’s Achievement,

“Their incorporation in the joint memorandum may be regarded ,as an attempt to save the spirit of the Ottawa agreement, while not protesting against violation of the letter,” “The Times” adds.

Should Have Been Given More,

The “Daily Express” says New Zealand should have been given more. It welcomes the first instalment of a policy of lending to British countries instead of squandering funds abroad. The mounting total of export credits is expected to be further swollen in the next week or two by the completion of the Polish negotiations, which have reached only a temporary deadlock owing to the Treasury’s insistence that a precedent should not be created by spending the credits out of Britain. The Chancellor of the Exchequer will have to finance ,at least £350,000,000 by a bond issue. City opinion favour October as the time and short medium maturities as the method. Discussions, according to Mr Walter Nash, are “proceeding satisfactorily,” but the nature of the bargain he will be able to strike with investors remains to be seen. The City considers that Mr Nash so far has got rather the best of the discussion. His assurances fall short of those that industrial circles desired. Reassurance Accepted. Commenting editorially, “The Times” points out that the White Paper, issued yesterday on the granting of £ 9,000,000 credits to New Zealand takes notice of the reassurances given by Mr Nash in regard to the application of the licensing system, which amount to a declaration that British trade to New Zealand will continue to enjoy the advantages stipulated at Ottawa, although Ottawa is not mentioned. The assurances are not new, the paper adds. They were given originally by Mr Savage, and are reiterated by Mr Nash.