OYER-SUBSCRIBED

New Zealand Times, Volume LII, Issue 12196, 22 July 1925, Page 7

OYER-SUBSCRIBED

AUSTRALIAN LOAN IN NEW YORK GOOD RECEPTION IN LONDON. Reuter's Telegram. NEW YORK. July 20. The Australian loan was offered to the_ public to-day end was oversubscribed in one hour after the opening of the books. (Received July 24, 8.35 p.m.) ‘ . LONDON, July 20. The “Financial Times” says it is understood that the Australian loan is meeting with a good reception. It will not be surprised if the list closes before the time limit on Wednesday. HARMFUL TO BRITAIN ? TREASURY DOES NOT THINK SOP Reuter’s Telegram. LONDON. July SO. Replying in the House of Commons to Commander Kenworthy, who asked whether the placing of the Australian loan in New_ York was not a bad thing for the Empire, the Hon. W. Guinness, Financial Secretary to the Treasury,, said it would be undesirable for the Treasury to take action in such a case. They could not lend abroad more than the export surplus, otherwise they would soon be landed in financial difficulties. (Received July 21, 7.45 p.m.) Mr Herbert Williams drew attention to the restrictive effect on the export trade caused by discouragement being shown towards the raising of overseas loans in London. Mr Guinness pointed out that it was opposed to the interests of trade _ to lend more than the nation’s savings permitted, and if Britain continued to over-lend a general increase in money rates would be inevitable. He added that the Treasury would not impose restrictions.