FINANCIAL INTERACTIONS.

Wanganui Chronicle, Volume 75, Issue 142, 18 June 1932, Page 1 (Supplement)

FINANCIAL INTERACTIONS.

The political upheaval just reported does not promise to improve the prospects for bondholders or for the investor in Chilean commercial enterprises. As with other Latin-American countries, the British capital invests ments in Chile are important. The external Government debt amounts to more than £91,000,000, of which £30,000,000 is held in Britain, New York with £57,000,000 having practically all tho remainder. The whole British investment in the country is estimated at about £100,000,000, of which some £20,000,000 represents railway capitaL The losg of interest on the Government debt is serious primarily for the bondholders, and next because of its adverse effect on the money market* generally. If the yield on the whole investment is in jeopardy, it threaten® to intensify further the difficulties over the balance of trade against which Britain has been -struggling for a long time now. Apart from these features, the situation shows the degree in which the finances of one country affect those of another, especially when they stand in the relation of lender and borrower, as Britain and Chile do.—New Zealand Herald.