EMBARGO ON LOANS

Wanganui Chronicle, Volume LXXXII, Issue 19436, 23 October 1925, Page 8

EMBARGO ON LOANS

EFFECT THE TRADE

BRITISH MERCHANTS ANXIOUS LONDON, Oct. 21. The Federation of British Industries has addressed a memorandum -to the Governor of the Bank of England urging the removal of the embargo from foreign loans. The memorandum says: There is no need to emphasise the important role which the large annual investment of British capital in overseas countries has played in supporting and developing the export trade, nor the serious position now existing in trades which depend for their full prosperity upon a substantial volume of exports. In the event of the Bank deeming it unwise at present to abandon the embargo completely. the Federation suggests partial relaxation in respect of loans, proceeds of which would largely or wholly be expended immediately hero in the purchase of British goods. *

MAY BE LIFTED NEXT WEEK

OVEBSEAS PRESSURE TELLS. Received Oct. 22. 7.30 p.m. LONDON, Ort. 22. Tt is understood that as a result of newspaper publicity in Australia and London, as w'dl as the persistency of the Agents-General, there is a likelihood of the embargo on overseas loans being lifted next week. Mr. L. C. M. S. Amery, Secretary of State for the Colonies, has not yet replied to the Agents-General, but- there is reason to believe that the unexpected disclosure of the position has had the effect of weakening the Treasury’s opposition. The matter was taken up in the City columns of the London press, which insistently advocated early removal of the embargo in the interests of trade, which at present shows hopeful signs of revival.

PREFERENCE TO DOMINIONS

OPINION OP “FINANCIAL NEWS.” Received Oct. 22. 9.30 p.m. LONDON, Oct. 22. The “Financial News” says: It appears that the embargo on loans is drawing to an end. Permission litis been granted or Ihn flotation of at least one issue in January. The “Financial News” adds: “We may foresee a transition period, in which foreign loans will be admitted with discrimination. Tn our opinion Dominion and coloni'al issues should have first preference.