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Hokitika Guardian, 27 May 1930, Page 4

Recently it was reported that an attempt I|ad been made to float an Australian loan in New York, lint that the terms offered were so rigorous that negotiations were broken off. This rumour at least suggests that Austra--1 a’s credit is not particularly strong on Wall Street just now, and this is

to some extent borne out by a statement just issued by the National City Company, dealing with Australian securities. This report is an attempt to reassure American bondholders in regard to the solvency of the Commonwealth. it points out, that though Australia had borrowed too largely in tlie past, chiefly on account of schemes of economic development prematurely undertaken, the Commonwealth and State Governments have now “put their house in order’’ and are not only economising but are strengthening “the machinery for the redemption of the publie debt.’’ Tor these reasons the National City Company is quite sajti.u.ied that Australian wends, in spite of recent fluctuations, “will soon attain their normal le\els, with enhanced leputation and security.” The only comments that it seems necessary to make are these—that the Americans are anxious to induce Australia to borrow in New York, but Australia’s credit has been so bad there that they would oiler only extortionate terms, and they are now divided between tiie natural desire to “do business” with tiie Commonwealth and the not unnatural fear that they may ultimately lose their money. Australia has -■ceil on the American market before, hut not at a very satisfactory figure, and it may well he expected, the terms at this juncture would be still less attractive. In view of the position, it it well for New Zealanders to note that the Dominion when it went on the London market just before Sir Joseph Isrd relinquished office, had no difficulty in having its demands satisfied. Something like four times tiie amount of money asked for, was offered. There is therefore no lack of money awaiting, investment in London, and it is pleasing to find New Zealand credit standing so high, Credit should be given where credit is due, and at this stage it is certainly due to the safe handling of New Zealand finance by the United Government under Sir Joseph Ward’s capable leadership. The peasing experience referred to is altogether to the credit of the retired Prime Minister, and was a filling climax to his■ many financial services affecting the Dominion. His successor, Hon G. W. Forbes wlio is Prime Minister and is expected to he Minister of Finance also, has no 1 doubt- been a devoted student to Sir Joseph and will, still have the veteran leader’s services at- call. All should continue to b-e well with New Zealand financially in consequence.