BRITIAN'S FINANCIAL STRENGTH

Hokitika Guardian, 16 August 1928, Page 4

BRITIAN'S FINANCIAL STRENGTH

FEELING OF OPTIDIISDI

AUCKLAND, August 14

“It is simply marvellous to find that u country with 1,250,000 unemployed is able not only to meet its obligations and reduce its public debt, but also to make new loans abroad to the extent of ten millions of pounds annually.” *

In these words, Mr Robert B. 1! ’Comas, a director of the Commonwealth Bank c.f Australia, oh his return by the Niagara yesterday, expressed admiration for British financial genius. He gave an interesting review of the financial conditions ol various countries which he visited.

‘‘On my arrival in p'rance,” said Dir M’Comas, “ I found that bankers and the trading public were confident that ns soon as the elections were over the franc would be stabilised. Jn the meantime there was a brief period of stagnation, both in France and in adjoining countries. However, the forecast that after the elections the stabilisation would he at approximately the rate which was ruling previously proved to he correct. Almost instantly there was an improvement. In Italy the financial position appeared to he greatly improved. The Italians, who have a penchant for banking, have extended their operations in that connection to many countries outside the borders of their own country. To-dav Italian hanks may he found operating in western European countries and in North and South America.”

“ In London,” said Mr M’Comas, “1 had an opportunity of meeting many of the prominent bankers, particularly Australian and New Zealand directors and managers. Generally there appeared to be a feeling of optimism. No doubt some of the industries have suffered and arc suffering" badly Irom having lost their trade during the war, and some of them are having a hard fight, to regain their connections. Tt is, however, simply marvellous to find how Britain is financially re-establish-ing herself.” Dir Dl’Comas said that while lie was in New York the difficulty with Stock Exchange transactions practically reached a head. There were spectacular falls in many loading securities, more especially in some finite important hanking institutions of undoubted reputation. “Unfortunately, sail Dir M’Comas* “Australian securities were to some extent involved m the fall The Australian 4) per cent loan, which was floated at 92*. sold on some of the worst days flown to 86S, but m view of the fact that front day to day money was at that time costing 10 per cent per annum, the 'fall may be iegarded as only a passing phase. " “The most striking feature 1 noticed was 11 to wonderful financial strength of Britain; in fact, the general feeling among financiers appeared to he that a strategical mistake had boon made bv Australia in going past the London market, which, recently at aU events, was anxious for her business. Speaking of New Zealand credit in London, Dir M’Comas remarked that it stood very high. Investors recognised that compared with similar securities, money placed in New Zealand must be expected to return lower rates ol interest This meant that the Dominion stood well in the eyes of British investors,