CREDIT IN NEW YORK.

Manawatu Herald, Volume XXXIX, Issue 1668, 30 January 1917, Page 4

CREDIT IN NEW YORK.

American hankers are fully alive to the possibilities of an outburst of wild speculation as the result of the enormous quantities of gold being received in New York, the correspondent of a London newspaper staled recently. It is realised that large stocks of the metal are already available as the basis for dangerous inflation. No stone is being left unturned by the leading bankers to check the overwhelming gold shipments. A lively campaign is being conducted in all parts of tin 1 country in an effort to convince American investors of the advantages to be gained by accepting the unsecured loans of the allied Governments. The idea is to encourage the Entente Powers to place large credits or even short-term notes on this side instead of sending gold to settle their adverse trade balances as the result of the heavy war purchases. In banking circles the buying of short-dated Treasury paper of Great Britain and Prance by promienl American institutions is freely discussed. Serious attention is being given to obtain-

iiig- a supply of these* notes, which have proved so popular iu Loudon and Paris, tor distribution here. A large number of investors have expressed the desire* tor the obligations ot these Governments running DO to 120 days, as distinguished from long-term bonds. Bankers agree that this would be a very satisfactory method ot extending tliecredits available for the purchase of supplies here by the allied natit ions.