LOAN IN NEW YORK

Sun (Auckland), Volume III, Issue 889, 5 February 1930, Page 9

LOAN IN NEW YORK

SYDNEY FLOTATION ON AMERICAN MARKET MONEY URGENTLY NEEDED United P.A.—By Telegraph—Copyright Reed. 9.20 a.m. NEW YORK, Tuesday. It is understood that Sydney has just completed negotiations for the flotation of a loan here. Advice was received in Sydney from London in January that until the coal dispute is settled, the underwriters would not entertain projects for raising loans for Australia. So serious had the financial position of the New South Wales State Government then become that the Hon. B. S. B. Stevens, State Treasurer, was requested by Cabinet to recommend emergency measures of relief. The Premier, Mr. T. R. Bavin, then made an eloquent appeal to the Miners’ Federation to realise the economic facts and to join the Government in an effort to bury the past and place industry on a sounder footing. Three days ago Mr. Bavin stated that the State’s difficulty was in obtaining loan money for a continuance of public works. If money for this purpose could not be obtained, drastic retrenchment would have to be considered. The recent financial collapse on Wall Street, New York, has had the general effect of turning investors from the more speculative type of security toward sound municipal and State loans. This is the natural reaction from a financial crisis of this kind.