AUSTRALIAN MONEY GOES OVERSEAS

Evening Post, Volume CVIII, Issue 131, 29 November 1929, Page 14

AUSTRALIAN MONEY GOES OVERSEAS

'Investment. of Australian funds in Great Britain and America has been larger than usual this year, states a Melbourne paper. There was some purchase on Melbourne and Sydney account of Australian loan stock in New York. The "Sydney Morning Herald," in commenting on the matter, says that one object was to • escape both Australian and United States income: tax, and another object was the belief that the security was greater in New York than in Sydney. Settlement in .most cases had to be made through London, and the increased cost of exchange. did not deter \ transactions. Though, with depleted London balances, the investors found difficulties in the way of transmitting money through the banks, they were not stopped. They went past the banks to other institutions, which have funds in London, and by .paying a premium on the rates^ quoted by the banks for mercantile business, obtained the transfer. The writer remarks • ■ that the banks through their* self-denial have lost business, and: yet have not prevented a loss of funds to Australia. The Melbourne remittances, . before the London shortage position became acute, were made through the banks. On account of unduly large imports; and small exports Australian funds in London have b.'een urgently needed by the :Governments for interest payments. : These cannot be met without recourse to the.'London market, corresponding _sums being made available in Australia out of the revenue for loan expenditure.