British Empire is Good Security

Sun (Auckland), Volume I, Issue 242, 3 January 1928, Page 1

British Empire is Good Security

AMERICA KEEN TO LEND AUSTRALIAN BANKER’S VIEWS "Next to her own, Amerca regards the British Empire as the best security in the world.” "America looks upon Australia and New Zealand as the two parts of the world with the greatest potentialities.” THE above observations were made yesterday on the Niagara by Mr. H. T. Armitage, deputy-governor of the Commonwealth Bank of Australia, who has the distinction of being one of the youngest bankers in the world to hold such a position. He is returning to Australia after completing two important missions in America. One was to open an agency of the Commonwealth Bank of Australia in New York, and the other was to negotiate, in conjunction w r ith Sir Hugh Dennison and Mr. J. R. Collins, financial adviser for the Commonwealth in London, a loan of £40,000,000 for the Commonwealth Government. “Before the war London was the centre of world finance,’* said Mr. Armitage. “She is still the centre of the world’s banking, but America now has such an accumulation of wealth which she cannot use in her own country that she must use it beyond her own borders.’* ' America is keen to lend money in the British Empire, continued Mr. Armitage. Speaking of the rates of interest, he said that Canada can borrow at the rate of 4£ per cent., Australia at 5 per cent, and Norway and Sweden at 6 and 6J per cent. The Canadian rate is cheaper because Canadian loans are legal investments for American savings banks and insurance companies. NEW ZEALAND DEVELOPMENT The New York money market is in a very Healthy state, said Mr. Armitage, and the bankers are looking forward to an era of cheap money in the next six months. American financiers are taking a tremendous interest in Australia and New Zealand because of their great possibilities for future development, and they are keen to lend money. After visiting America, Mr. Armitage went on to England, where he found the London money market quite sound and going along steadily in its own quiet way. “London is not subject to waves of enthusiasm like New York,” he said. During his stay in London Mr. Armitage had the honour of being caricatured by David Low, the New Zealand cartoonist who has become famous. It was at a dinner given by a prominent Australian at which the Duke of Manchester, Sir Bertram Mackennal, the sculptor, and Levitski, the pianist, were present.