LOANS IN LONDON

Wairarapa Times-Age, 22 July 1939, Page 8

LOANS IN LONDON

AN UNRESPONSIVE MARKET

HEAVY BRITISH BORROWING IN NEAR OFFING. VIEWS ON NEW ZEALAND’S POSITION. By Telegraph—Press Association—Copyright. (Received This Day, 11.10 a.m.) LONDON, July 21. With the market dominated by the prospect of the British Government’s heavy borrowing programme, giltedged and Dominion issues failed tc participate in the short-lived spurt that other sections of the stock markets staged under the stimulus of more hopeful international news.

The new issue market is still unreceptive. Sixty per cent of a £2,000,000 Sudan loan has been left witl* the underwriters, which is not a bright augury for the New Zealand loan conversion. Discussions, according to Mr Nash, are “proceeding satisfactorily,” out the nature of the bargain he will be able to strike with investors remains to be seen. The City considers that Mr Nash thus far has got rathei the best of the discussions. His assurances fall short of those that industrial circles desired.

The mounting total of export credits is expected to be further swollen in the next week or two by the completion of the Polish negotiations, which reached only a temporary deadlock owing to the Treasury's insistence that a precedent shall not be created by th* spending of credits out of England. The Chancellor of the Exchequer will have to finance at least £350,000.000 by a bond issue. City opinion favours October as the time and short and medium maturities' as the method.