AUSTRALIAN CREDIT

Hokitika Guardian, 1 March 1930, Page 6

AUSTRALIAN CREDIT

SIR SAMUEL HORDERN’S APPEAL

FREMANTLE, Fob. 19

The urgent need lor investors, large and small, to strain every nerve to adcqpt renewals in tlie Australian conversion loan, was emphasised today, in an interview, by Sir Samuel Hordern, of Sydney. He said, tlnvt for the sake of Australia’s credit throughout -the world, it was imperative that there should be no difficulty: about the loan conversion. A national outlook would have to be attempted, and all minor interests, such as party politics, definitely excluded.

Sir Samuel Hordern is returning to Sydney on tlie liner Orford, alter a holiday in England, where hot found Australian stocks in disfavour.

“While we, in Australia, do not feel any lack of confidence fin the future from the point of view of production, there is no escaping the fact that the British investor lias lost confidence in Australia,” Sir Samuel said. “The small investors are people who are selling Australian stocn. Our 5 Tier cent loans, maturing in 1945 and 1075, which were issued at 98, have been quoted as low a.s 84j, but later recovered to 86V and 87, while comparable New Zealand stock has not been below 99, and the 5 per cent British 'war loan, rarely under par. Since I left England tilings have impio\ ed, '’and I was delighted to learn at Fremantle -that there has been a general recovery,! but the position is still- far .4r<rm Satisfactory. Liquidation of ~Australian'' securjties has been repom- ' mendecL but not only by London brokers, but by other interests, and the /psychology of the investor is such that lie is easily stampeded into a condition of nervousness. Recent happenings, such as the Hatry frauds and the financial collapses in Street, have not contributed to the calmness and stability of the outlook, and there has been a good deal of selling of Australian stocks, which has led to the inevitable result of marking down in prices.