FOR SAFETY

Wanganui Chronicle, Volume LXXXIII, Issue 19719, 9 December 1926, Page 7

FOR SAFETY

FEDERAL GUARANTEE FOR STATE LOANS TOO MANY ISSUES LONDON FINANCIERS’ VIEWS ) By Telegraph—Per Press Assn.—Copyright. J LONDON, Dec. 7. J It is understood that, following upon recent difficulties connected with Queensland and New South Wales loans city men are suggesting that in future State loans should be excluded from the trustee list unless they are guaranteed by the Commonwealth. They point out that State loans were originally included in the list prior to the federation. The situation has since been completely altered. They express the opinion that if State lotans were not included in the trustee list they would obtain very sdanty City support, and the States would therefore be compelled to apply for Commonwealth sanction, thus obviating the necessity for repeated investigations into the finances of individual States, which is very difficult tat this end. 1 ‘The impossibility of striking off present issues is fully realised,” said one authority. “The suggestion bristles with technical difficulties, but the effect would be salutary. There are too many State loans floated here.”