FINANCIAL.

Hokitika Guardian, 27 November 1925, Page 4

FINANCIAL.

NO SKIS OF CHEAP MONEY

AVKI,KINGTON. Nov. 25. There tire no signs anywhere ol the advent of cheap money, and the prospects are rather in the direction ol a maintenance for some lime to come of rates at or about the present level. Such is the conclusion arrived at by Mr K. H. \Vrelord, of Melbourne, chief manager of the National Bank ol Australia. who readied Wellington by the Mnkura on his return from a world's tour, which lias embraced Great Britain. Kurop;'. tiic Knited States, and Canada. He left Melbourne in Kebruarv last, and has spent two months in Knrope, several in Kngland. and a couple ol ini)utlis in America. ■‘The objects of my visit abroad." Mr AVrcford informed a reporter today, "were to see hanking trieuds and agents, and partly for holiday purposes.” He was disinclined to pass any criticism on financial conditions in Kngland, in fact. he tnld_ London banking friends at a banquet that he had come there not to criticise. hut to ; I’ust his financial compass. In New York he found, in conversation with local hankers, that they were vorv pleased at having been able to subscribe and place the Australian Comtnonwet litli external loan of £lo.O(V).OflO. They regarded it as very good security, and incidentally said they usually regarded Australian. New Zealand, and Canadian issues in the same class as K.icdisli as regards safety and merit. "Hi Canada,” said Mr AVrcford. ‘•there is some difference of opinion as in whether the recent reciprocal trade agreement, with Australia might not injure primary producing interests in Canada, hut, they recognise that it will

undoubtedly benefit their export paper trade. Mr AV relord fotiml a good deni id auxietv t hniughnut tile muuiltuetui ing (•(.ulres in Knghind regarding British export- trade. The growth and keenness nf competition, and the operation of hoslile tariffs, were causing a flood deal of alarm. This did not necessarily anplv to all branches ol industry, though the feeling was very general.” “T| u , wisdom of the return to the eeld standard is questi mod in litany ii ll ntiers in Kuglnnd." declared Mr AV re ford. "But the * loverument adopted the maiurilv view and so far nothing has occurred In shew that \ iew to have keen incorrect. The authorities, however, are safeguarding the nation’s gold holdings and any very large exports of the metal would he viewed with some apprehension.'' Kverywhere Mr AYrefold found a great and growing interest tu Xew Xcaland and Australia, which ha considers will undoubtedly lend to an increase tit the flow of men and money to hath countries. The Australian hanker did not ativwhere see any sign ot the advent of cheap money, and thought that the prospects, speaking broadly, were rallied in the direction of a maintenance for some lime to come oi rates at or about the present level. Mr\\ reford found in New A ork a growing interest in foreign bonds. Many Kuropomi nations and some of the smaller ones were beginning 1" make use of New A'r.rk for their government and military requirements. ‘•A vorv live question at the coni creme of hankers at Atlantic City." he ~•,1,1 --was that of branch hanks, which received a great deal of attention. and it seemed likely that as a result conflicting views may he compromised to the extent of allowing a hank to have branches within its State ol origin hut not outside. I'or instance a hank in New York would he permitted to open branches anywhere in that state, hut would not he allowed to open a branch in Massachusetts. I here were so many lailttres ot small hanks

in tlio north-western portion of the United States within recent years that the introduction of bigger institutions by the means of branch banks would appear to be advisable.” One of the objects of Mr A\ reford’s visit abroad was to study banking construction and equipment in view ol the new ten-storey building h.is bank is erecting as headquarters in Collins Street, Melbourne.