LOAN FOR BELGIUM.

New Zealand Herald, Volume LXIII, Issue 19470, 28 October 1926, Page 9

LOAN FOR BELGIUM.

£10,000,000 FROM AMERICA. SUBSCRIBED IN HALF AN HOUR. Australian and N.Z. Cable Association. (Reed. 9.5 p.m.) NEW YORK, Oct. 27. Messrs. J. P. Morgan and Company, head of the syndicate that is floating the- American portion of £10,000,000 ol the new Belgian stabilisation loan, announce that all the bonds ' have been sold. The subscription lists were closed half an hour after they were opened. SUCCESS OF THE ISSUE. LARGELY OVER-SUBSCRIBED. Australian and N.Z. Cable Association. (Reed. 12.5 a.m.) LONDON. Oct. 27. The new Belgian loan of £20,000,000 has been largely over-subscribed. The September bulletin published by the Swiss Bank Corporation, discussing the Belgian financial situation, states that although the present Belgian Government has only been in power three or four months, and the eventual effect of the measures hitherto taken cannot yet be gauged, recognition must be accorded to the zeal with which it has attacked the business in hand. Confidence is gradually being restored, and while the Belgian franc is not artificially supported, it has nevertheless recovered from a level of about 235f. per pound sterling to between 170f. and 180f. The situation, although still ' delicate, is better than it was at the beginning of the year. Economic condi- ! tions in genera] seem not unfavourable. The devastated districts are completely reconstructed. Industrial plant is in a better state than it was in 1914; pre-war output has been regained, not only in industry, but also in agriculture. In addition to this, the Congo represents a very rich asset, the natural resources of which are being developed with striking rapiditv. In short, it would appear that after the difficult period through which Belgium has passed since the war the country is now definitely on the way to recovery, and that while foreign aid will still be necessary, a sound currency situation, which is the necessary basis for normal conditions in production, trade and consumption, will gradually be re- , stored.