The Timaru Herald. TUESDAY, JULY 21, 1925. LOANS FROM U.S.A.

Timaru Herald, Volume XCVIII, 21 July 1925, Page 6

The Timaru Herald. TUESDAY, JULY 21, 1925. LOANS FROM U.S.A.

Americaa financiers have every reason to ieei rfauslieu wuji Wc movements or tne> money lmiAui wiucu iuive, lo all lnienis anu jmijyasc-s, compelled l\ue L> versa at, Dominions iu 'turn irom. uie moaner Eountry- and seen financial aocominoiiaiion in new 1 urn:, "minei'ican uauuwcv»," said "Ido Evening (journal" ui is ow, lorn eaiiy in tiie year, "will join wiuu Jjuliuoii Danners in. ne'ijnng- Ausu'aua uy noaiiiig' a buna issue at ru<J,UUO,UOU uoimrs. ’iliaL is a guua luea. rnp-so bonus wnl Le good Donas. on tins eon uneiil, norm and souUi, is, liiievesiea in anyuiing maij can do useiui to Aus man a and New nealand. Australians ana new neaianacvs me living witnin tbe yeiiow snadow ox Asia, i 1 roil tiersmen wno are derendcis or uie wnire lace snoiiid nave all me neip than can be given in money ana in any otner way. W nai is must important ro Duyersi is mat Australians will pay mear debt, lon may buy those Australian bonds surely. That is a deal mole man we can say lor many bonds iroin Europe now being unloaaen on American markets." JNotwitns ianumg tins ratner inappropriate reieionce to the colour prouiem, it may oe uiis.cn. lor gran ten mat American nnanciers pay little regard lo sentiment wren tne i^uesnon oi easn is involved, 'ihe loan ueai witn tne UummonwealtJi Uovernment is being conducted on purely business lines, nor some days uncertainty nas ecdsted as to tne amount oX the loan, but me caole messages uns morning supply lull particulars oi tins new ana rather unvveicomed departure iroin the aceepica policy or tne Overseas Dominions. "I'he faydney Daily 'ledegiupn,” commenting on the proposed loan from America, says it will be nailed with satisiaetion by those who thnUi only oi thei temporary trade stimulus to be expected as a result of so much new, money pouring into tne country. "bio j.ar our borrowing nas been a xamily anair," says the paper..

"rt is now proposed to preagu me assets oi Australia to loreugn moneylenders.'' Alter uuax.wg n’itn me possible cusaoilities ox a small nation, and me chances ox me stipulations which may be impose a cxusning with imperial prexei'ence or ssith. tne interests ui tne present oonunolueirs, tne

"i'elegrapn'' adds: "ao one wnl deny mac, other things being equal, it would be better- to continue transacting our loan busij ness wnnin mo Empire. H me iiondon marnex earnnuu s uppiy tne money, it snouid be raisea locuiiy. America nas proved a snrewu creditor to the nations she helped in war time, aim it may lo supposed mat her anxiety to xenu money to Australia is iiuij all uuo to aiiraistic mo lives." There is nothing altruist,io in America s nnuncmi pulley. The "i\ew, i one I isdn" proven us to pat the question ironi me Aus uaiian vie w'youit:

“It American investors,” any a. tile “duu," "x‘eliev© Aus-uralm at tins reiuiancmg' tniraen lt> Wit; extent. ox *i£U,tA/O,UUU, it will, in on wot, release. lean amount oi cioait lor me- benetit ux Austvaiiun nome euuerixri&es. xiocuruuig to ail reports cnau cretin, ecutu. bo us&U. to good ad vantage at jjieaent. Tno rate. which Aua wail a pays lor tno ioan Here. will be. Watched, wit-H interest. The. olate. ox biuoensiand, me mmeaiean journal points out, has two issues ox uoilar oonua listed on met New lorn DtocH nxcnangei. Thei b pel cents, vtau selling" on a o.ou pci cent, basis, xi m-vv. montns u e o, vvnen tnese bonds were, p'raota ea-iiy at me same price., iroxtuon pur tnrongn a long-term lerunuing ioan xux tv'ueensxitnu on a basis ox a snaae iugner man 0 per cent, li eorreoLiy juiced mero is> every reason ror leiievmg mat a large Australian loan would be. taken up iprieiuy m mis country." me xaec ox the matter is American tmaneiers are. about to icaji a non nurvest irom me restoration ox me gold stanuard winch cnioiced a High, banix rate on Xunmon. There is m ihe. united b tales banns At)UU,(JuU,UUU in gold —an excess ox aibUU,UUU,OUU over legal requirements. mat is to say, tno 1 oueral itcservei JLJanK socks to mid investment lor an enormuis accumulation ox goiu. naen minion ox gold bailee. m tnc

ximoiican vaults menus mat some A,ou,buo a year in imei’est (taixiug toe rate, at o per cent.J is suerixteed. lx dooti,UUU,UoU is so entumbeu, mere, is a loss ox iIOjUOUjUUI) annually. The. re-s toration ol the gold standard hits uuyuesiiona Ory Hampered colonial oorro.winy jji Hendon, oven to meet maturing war loan obligations. lienee Hie negotiations with the United btate.s. .t’li'.tvn millions taken irom, American vaults where, til© precious meuu iias remained, lor some years, gives tlio American imam-iei.s a welcome return ol .iTolgUui) per annum tor gold which would otherwise return no interest, lienee the plaudits, of ceilaiu sections, of the Amei (can pie.s.v. 11. is, newertlieles.s, nppaient. I lial there is noticeable, nervousness in financial eireJes m J.omhm a(. the tendency of the. centre ol iiuanciai gravity of the .Empire to move irom .Loudon lowaid JNew York, since, the feeling is general, we are. sure, that borrowing- should lie kept within the family circle. It is. fervently Imped, Ihcietore, that the Oversea i)nminions will not, become entangled in the wheels of the American gold chariot to the detriment ol

colonial boirowers and theestrangement between the Mother Country and the family scattered throughout the Seven Seas of the world.