Nelson Evening Mail WEDNESDAY. JULY 15, 1925 THE AUSTRALIAN LOAN

Nelson Evening Mail, Volume LVI, 15 July 1925, Page 4

Nelson Evening Mail WEDNESDAY. JULY 15, 1925 THE AUSTRALIAN LOAN

A FEW vears ago when Queensland under the Premiership of Mr Theodore, raised a comparatively small loan in America, there was quite an outcry against tlu* operation. It. was characterised as disloyalty to Britain, as destructive of British financial predominance. Vet, to-day when the Commonwealth of Australia proposes to raise ten or twenty millions sterling in New \ ork the prono sal is received in London favourably certainly not with disapprobation—bv pome of the highest financial experts. What has happened to cause this altered attitude? Is it that the London moneymarket does not desire to raise the loan? Or is it that the terms offered by London are not so good as 11 1 ope offered by New York? In any case from an Imperial point of view it seems a pity that the loan should be raised in New York, but whether the blame lies with London or with Australia, is hard to ascertain with the information at present available. Considered economically this fi nancial operation lias far reaching effects. Plainly New York expects increase of trade between Australia and (he United States as a result of the loan, and no doubt, their expectation is well founded ; but Australian trade diverted to the United States is trade lost to Britain. So that this financial operation strikes a blow at the principle newlyvoiced of free trade within the Empire and a. high protective wall against nation;?, outside the Empire. But this aspect of the question makes more inexplicable 11 10 clumsiness or ineptitude or indifference which allowed the London financiers to let the. loan go to New York. At a time when Britain's great problem is the restoration of her in duwtrinl prosperity it is strange that her liraiiciers should allow a great British dominion to transfer so large a portion of its finance from London to New York. London doubtless is still the financial centre of the world but a few more, blows such as this one must gravelv affect. her predominant position in the* world's money-market