Tight Money Market

Sun (Auckland), Volume III, Issue 766, 12 September 1929, Page 1

Tight Money Market

NEW ZEALAND’S POSITION

£11,600,000 Now Needed

( United P.A.—By Telegraph — Copyright) (Australian and N.Z. Press Association) ( CJ7lited Service}

Received 10 a.m. LONDON, Wednesday. IN consequence of an urgent message from New Zealand, the High Commissioner, Sir James Parr, left Geneva by airplane at 11 o’clock yesterday, and arrived in London at 5 o’clock. It is believed that his arrival relates to an early and vital loan conversion.

Financial circles are taking a considerable interest in New Zealand’s finances, in view of the necessity of finding £11,600,000 to repay the four per cent, loan falling due on January 1.

It Is believed that a certain portion of this sum was found in New Zealand, but in the present stringent monetary conditions here, flotation of a loan will only be possible on very costly terms. Consequently, the money market would not be surprised if New Zealand obtained accommodation in the shape of Treasury bills, preferably of six months’ currency, as these are more popular than yearly bills, and could be renewed at the end of their currency if conditions are still unfavourable for a long-term loan.

“NOTHING IN RUMOURS" PRIME MINISTER DENIES FINANCIAL CRISIS NO GRAVE DEVELOPMENTS (TUB SUN’S Parliamentary Reporter) PARLIAMENT BLDGS., Today. A denial that there are any grave developments on the London financial market as rumoured was made by the Prime Minister to a Sun reporter today. Sir Joseph said that all the financial arrangements in London regarding the loan were satisfactory and there was nothing at all in the rumours. “There is nothing in the rumours about grave financial developments,” he said.