AMERICA AS A LENDER

Wanganui Chronicle, Volume LXXXII, Issue 19478, 26 December 1925, Page 9

AMERICA AS A LENDER

> PREPARATIONS IN NEW YORK. ■ Thp announcement that the National 1 | City Bank of New York has appointed a permanent representative in Austrailia is an indication of the belief in the United States that Australia is to be- > come a permanent borrower in New York (says the Sydney “Morning Herald.”) The National City Bank of New York is one of the great, issuing houses in that city, and has already done business with Australia, having issued two Queensland loans. New York hopes to become the great issuing centre of the world. Th. re are many who think that the amount of capital available in London is now restricted. Borrowers will find New York’s terms different from those of London. New I York insists on a sinking fund. In London this is not imperative, though in certain classes of security the exist ence of a sinking fund makes the success of the issue more certain. The hope is expressed in New York that loans will be made not only to Governments but to municipalities and corporations. It will all depend upon the terms. As to the States, loam; will probably bo found to be more conveninet to raise in London, as the money is used in London, but if the exchange is low, that is, if the pound in term of dollars is low, then occasionally it may be found profitable to raise the loan in New York and transfer the funds to London. It would also help exchange. It may be that the National City Bank is getting first in the field, foreseeing a great foreign loan movement, consequent upon the expansion of credit in the United States. That campaign lis predicted in the September-October I issue of the Review of the Midland IBank, Ltd., of London. The writer of | the article first of all directs attention to the phenomenal expansion in the I volume of credit in the United States ; during the past three years. In June, 11922, the deposits of all the incorporated banks amounted to nearly <32,000 • million dollars, but by April of the present year they had increased to 39,000 | million dollars, indicating a total credit I expansion of, roughly, £1,400,000,000 122 per cent, or seven-eighths of the , total deposits of the London Clearing , Banks.