BANKS IN NEW YORK

Otago Daily Times, Issue 20704, 30 April 1929, Page 11

BANKS IN NEW YORK

THE COMMONWEALTH AGENCY. DECISION TO DISCONTINUE. (United Press Association.) ' (By Electric Telegraph-Copyright.) ■ NEW YORK, April 28. The brief announcement among a newspaper’ 8 financial notices that the Commonwealth Agency Bank here mil bo discontinued after June 10 came as .a distinct surprise, and is received with'considerable regret. It Is realised here that unquestionably, tlie reason for * opening the agency was for the purpose of arranging Australian financing here, the secondary purpose being the development of general banking business for foreign trade. There has been no Australian , financing here during the past’ year, due . to the general condition of the credit situation. - ■ However, this was not peculiar to Australia, but affected all foreign borrowers. Money tightness, moreover, is/expected to continue for at least another six months, while some, experts even decline to set any time for the duration of the extraordinary situation. The feeling is that the Commonwealth Agency has, however, played an important role from an international point of view, that.' it has. been an important trade factor—for instance, there was a new development in Australian hardwood, export here last year—and that the closing of its doors, is unfortunate. ■ .. It is believed that the particular date chosen for closing is due to the fact that the agency would have needed to seek new premises by June 30, since the Pine street building is coining down shortly. The part that the money Situation is playing in closing has been well ..con-, sidered here. Financial circles particularly are arrested by the fact that various internal issues floated in. Australia have , been so successful and on such good terms that the whole question of • Australia’s going .into the foreign markets may require reconsideration. ' Those particularly familiar with Australian banking conditions,, however; ask whether the more and less apparent reason for the withdrawal of the- Commonwealth Bank from- New York is the fact that there is some impending change in the Australian banking situation as a whole —namely, that there is some possibility that the Commonwealth Bank may become the central bank for Australia in all senses of the word, and under the circumstances the propriety of the latter competing in general banking b^iness"abroad with other Australian hanks is being considered.. It is expected ' that, although the agency is being shut, the appointment of a representative here will not be overlooked.—Australian Press Association.