A BANK AGENCY

Hokitika Guardian, 29 April 1929, Page 5

A BANK AGENCY

WITHDRAWING FROM NEW YORK

i United Press Association.—By Electric Telegraph.—Copyright.)

(Received this day at 10.30. a.m.; NEW YORK, April 28.

A brief announcement among newspaper financial notices that tlu> Commonweal tli Agency Bank here will be discontinued after lOtli Juno came as a distinct surprise and was received with considerable regret. It is realised here that unquestionably the reason for opening the agency was for the purpose of arranging Australian financing here, the secondary purpose being the development 6f general banking business for foreign trade. There lias been no Australian financing here during the' past year, due to the general condition of the credit situation. However, this was not peculiar to Australia but affected all foreign borrowers. Money tightness, moreover, is expected to continue for at least another six months, while some experts even decline to set any time for the duration of the extraordinary situation. The feeling is that the Commonwealth agency has, however, played an important role from the international point of view and that it lias been an important trade factor. For instance, there lias been a new development in Australian hardwood export here last year, and that the dlosing of its doors is unfortunate.

NEW YORK, April 28

It is believed the particular date chosen for closing is due to the fact that the Agency would have needl'd to seek new premises by 30th June, since the 25 Pine Street building is coming down shortly, and the part that the money situation is taking. The closing has been well considered here. Financial circles are particularly arrested by the fact that various internal issues floated in Australia have been so successful and on such good terms, that the whole question of Australia’s going into foreign markets may require reconsideration. Those particularly familiar with Australian hanking conditions, however, ask whether a more basic and loss apparent reason for the withdrawal of the Commonwealth Bank lrom New York is the fact that there is some impending change in the Australian banking situation as a whole, namely, that there is some possibility that the Commonwealth Bank may become the central hank for Australia in all senses of the word and under the circumstances, the propriety of the latter competing in general banking business abroad with other Australian banks is being considered. It is expected that although the Agency is being shut, the appointment itf representatives here will not be overlooked.