AUSTRALIA’S LOAN.

Waikato Times, Volume 102, Issue 17220, 1 October 1927, Page 7

AUSTRALIA’S LOAN.

U.S.A. BANKERS COMPLAIN, NO CHANCE TO PARTICIPATE* • (Received October 1, 11.40 a.m.) . NEW YORK, Sept. 30. It is understood that so great has been the dissatisfaction among at least three hanking houses here over the fact that they were not given an opportunity to tender for the last Commonwealth loan of over £8,000,000 that an informal protest has been sent to Mr Stanley Bruce and the Commonwealth Bank, Sydney, intimating that it would have been to the advantage of the Australian Commonwealth if its representative had conferred with several groups of influential bankers in order to obtain the best terms. The point is also made that if this had been done a wider distribution of Australian securities would have resulted in the American market avoiding a congestion of such securities, which occasionally occurs in London. Generally speaking there is a wide agreement that the loan was a success, and the return to the Commonwealth high, but it is insisted that the various hanking groups were so ready to compete for the honour of floating the first loan council issue in America that the usual underwriting and commission foes totalling 4 per cent, would have been reduced to as low as 2 per cent. Banking circles agree that the underwriters who floated the loan are of the. highest reputation, and the Commonwealth position was strengthened thereby, but they point out that other banks who desired to bicl were also of excellent standing, and that the financial arrangements existing between the Commonwealth Bank and its affiliations in America, tend to throw the Australian flotations to one group here.