AMERICAN CABLE NEWS

Hokitika Guardian, 3 October 1927, Page 2

AMERICAN CABLE NEWS

(Australian & N.Z. Cable Association.) the commonwealth loan. NEW YORK, Oct. 30. It is understood so great lias been the dissatisfaction among at least three hanking houses here, over the fact that they were not given the opportunity to tender for the last Commonwealth loan (cabled 23rd Sept.) that nil informal protest has been < sent to Mr Bruce and the Commonwealth Bank at Sydney, ’intimating it would have been to the advantage of the Australian Comonwealth, if its representatives had conferred with several groups of influential hankers in order to obtain the best- terms. The point is made that if this had been done a wider distribution of Australian securities would have resulted in the American market, avoiding congestion of such security which occasionally accrues in London.

Generally speaking there is wide agreement that the loan was a success and its returns to the Commonwealth were high; hut it is insisted that various banking groups wore so ready to compete for the honour of floating the first loan council issue ill America, that the usual underwriting and commission fees, totalling four per cent, would have been reduced to as low as two per cent. Banking circles agree, that the underwriters who floated the loan ate of the highest reputation, and the Common weal til’s position is stiengtheued thereby; hut they point out that other bankers, who desired to hid are also of excellent standing, and that financial arrangements existing between the Commonwealth and the bank and its affiliations in America, tend to throw Australian flotations to one group here.

TARIFF REPRISAL. OTTAWA, Oct. I. The officials of the Canadian Government Trade Commerce and Finance Departments are frankly puzzled by the latest changes in the Australian tariff on automobiles. Most of. the officials incline to the view that Australia’s action indicates a reprisal following on Australia’s eighteen months of an unsuccessful effort to get Canada’s anti-dumping duty on Australian butter rescinded. Other officials think that Australia is endeavouring to throw her motor market towards Britain. The officials declare that they have no intention of rescinding the dumping duty against Australian nutter, although the Australian tariff changes roh the Australian-Canadian treaty of much of its value.

WASHINGTON, Oct. 1. The increase in the Australian tariff on United States automobiles and parts will have little effect on this country’s export trade. This is the opinion of the trade observers of the Com merce Department. Because the Canadian branches ot the United States automobile industry are well established, it is unlikely that the general effect ot the Australian tariff change will be felt here.