BANKERS ’ VIEWS.

Taihape Daily Times, Volume XI, Issue 3437, 17 March 1920, Page 5

BANKERS ’ VIEWS.

.EF}S‘ECT ON WORLD }i‘lNA.'\'CJ:l

WELLINGTON, March 16.

“I am just afraid that it will be followed by an immediate drop in stocl~:s,” stated Mr Harold Bcauchamp (chairman of the Bank of New Zealand), to a Press representative, who questioned him with regard to the probable financial effects of the German militnrist and monarchist counter revolution. “It is the natural thing to expect," he continued, “also :1 general tightening in regard to money, which in Europe is appreciably higher than in this Dominion. .Apropos of tliis, I may mention that in the recent issue by the British Government. of e.\'chequer bonds. with a currency of five years. at 52% per cent. free of. income tax, to those not domiciled in Great. Britain, has been practically a failure. only one-third of it being subS1'I‘ll)(‘(l, though the terms offered were so good. “It will be noted, however, that there has been a manifest improvement in the rate of exchange. due either to shipments of gold to the United States, or to a substantial reduction in British indebtedness to the llnited States.” “As to this Dominion," added Mr Beauchamp, “I don ’t think we need look for anyvimmcdiate advance in interest rates here, owing to the ‘plethora of money which still exists in respeet of the proceeds of produce. This latter point. however, seems to suggest most forcibly the desirability of our Government doing all it possibly can to continue the commandeer 0 our leading lines of produce, notabié frozen meat, of which the stocks held _to-day in the Dominion are over five million ozarcases, “It is rather difficult,” said Mr Beauehamp, in answer to another question, “to say what will be the efl'ect ‘of the German coup d’etat on international relations, but 1 think this State of aiiairs has been brought about largely by the practical withdrawal of the United States from the Allies. No doubt, Germany realises that. in the event. of a further clash of arms between herself and the Allies, no Americans would come to the rescue of the ‘Allies, as they didprior to the signing of the Armistice; in other words it looks to me as if America is a quitter in every sense of the term, having placed its President in the position of not being able to ‘deliver the goods.-’ I think there is practically no chance of America coming into a European

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