DOMINION LOANS

Hokitika Guardian, 19 October 1925, Page 2

DOMINION LOANS

Australia ifc N.Z. Cable Association.J .AIK AM Kit Y INTERVIEWED. HON DON. Oct. 10. The Dominion Agents-General interviewed Mr Amcry (Dominion Secretary) anil asked him lo exert pressure on 1 lie Bank of England so as to fa'ilitate speedier Dominion loans, especially State loans. The interview was of a most cordial nature. Air Amcry received them in the most cordial mood, but said be understood the main difficultv rested with the Treasury. It was pointed out that there was no reasor. for the embargo on loans, in connection with which the Dominions, as junior partners of the Empire, were entitled to an explanation. One source which is regarded as inspired. lias advanced as the reason for the embargo a need for preserving the gold standard as preventing the influx of gold, hut th<' Agents-Gencral had figures showing that the quantity of gold sent to Australia in connection with the lasL two years’ loans lias been intinitismal. Mr Amcry said lie could not give any indication as to how long this embargo would last, hut he promised imiucdiato and the fullest investigation of the whole problem, and the speediest reply to the deputation,

Tne pcsitiiui is being widely discussed in London. A strong body of opinion links the embargo policy with the city's insistent demand that the embargo 011 foreign loans should In? lifted so as to give a much-needed fillip to the British export trade. ft is suggested'that the Treasury is faced with the difficulty that it cannot consiteiitly preclude foreign loans while permitting new Dominion issues. Hence the embargo. It is understood the Agents-General were told that if a restoration of the open market were contemplated, tho Dominions should have priority of treatment, because if the release is a simultaneous one. they would he sure to be submerged amongst the rush of foreign flotations, which are offering a higher rate of interest, and will get a more favourable reception on the market, thereby prejudicing the terms under which the Dominion- are seeking for money.

The question was al«o raised of the effect of the loan harrier on migration and settlement commitments. The Colonial Office has not issued any official report of the deputation, at which all the Agonts-General spoke at length. The proceedings lasted for an hour.

It is understood that the Imperial financial authorities are lio|>eJul to lift the barrier in the near future, not only on the Dominion, hut on foreign loans

The Treasury states so far as Australian loans are concerned, the Australian Loan Council’s arrangements still stand. LONDON". Oct. 17. Tlie “Daily TeTegraph's” diplomatic correspondent states that, with the decline of the trade balance on the one hand, and the conditons of the gold standard on the other, it was agreed between the Treasury and chief hankers that the drain on the country’s financial resources by constant foreign loan issues in London should be checked. The banks consequently took their own concerted measures to stop the efflux of Britsh money to Europe and also overseas by declining to issue loans hero, she was advised to raise, it in the American market, which is suffering from an overflow of resources. For the same reason, the Belgian Government is not finding it easy to secure British monev for

“stabilsation” loan. It is suggested that the dominions, nr any rate should receive from the British banks preferential treatment, as against foreign competition. Tt is certain, however, that if, and when, the City banks in informal consultation with the Treasury decide to remove or curtail the restrictions on foreign loans, those on the Dominions will bp raised at the same time.