FOREIGN LOANS

Dominion, Volume 14, Issue 205, 25 May 1921, Page 5

FOREIGN LOANS

IMPORTANT DECISION BY UNITED STATES CABINET

RETENTION OF MONEY TO STIMULATE INDUSTRY

By Telegraph—Press Association—Copyright (Rec. May 24, 8.35 p.m.)

Washington, May 21 (delayed)

Cabinet reached an important decision to-day on the foreign loan situation. In an endeavour to improve American industry, moral influence will be brought to bear on banking interests for the proceeds of foreign loans to be employed, to stimulate the United States export industry. Loans issued during the war will not be affected. Cabinet has issued a statement that it is hoped by the Administration that the interests which float foreign loans, such as the French loan of a hundred million dollars, which it is reported, will be offered investors early next week, will see that as much of this money as possible is retained in tho United States, either for purchase of American commodities for export or for redemption of loans maturing at early dates. The Administration is anxious that money should not be exported to develop foreign industries at tho expense of' the United States. There are five hundred’ million dollars outstanding, and foreigners are seeking the flotation of many more millions. It is hinted that the Government would exert pressure if a German bond sale were attempted, but it is understood that tho' bankers are willing to co-operate.—Aus.-N.Z. Cable Assn. UNDERWRITING FRENCH BOND ISSUE SYNDICATE HEADED BY J. P. MORGAN COMPANY. (Rec. May 24, 11.10 p.m.) New York, May 23. The J. P. Morgan Company announce that it is heading a syndicate to underwrite tho ’French Government issue of a hundred million dollars at 7J per cent, twe’ity-year external bonds. The bonds will he offered at 95, the interest yielding over 8 per cent, per annum subject to redemption prior, to the maturity. The proceeds trill be for retiring France’s obligation to the United States and the purchase, of foodstuffs and ma-terials.—Aus.-N.Z. Cable Assn.