Canberra Times (ACT : 1926 - 1995), Saturday 14 May 1938, page 2


LONDON BORROWING. ¿

THE failure of the recent Commonwealth Loan in London where

; about 66 per cent, of the issue is reported to have been left with the underwriters, should dispose for some time to come of the idea of London, borrowing of fresh money. Contrasted with the response that has greeted London conversion , loans for-the Commonwealth, the result of the last i loan appears to be that there is a disinclination in the London market to encourage Australian borrowing in London. It would appear that this disinclination has taken a form of anti-Australian propaganda. Investors have been advised against a one commodity country. Mr. Bruce has refuted the impression that Australia is a one commodity country, and Mr. Menzies has impressed his London audiences with a broader view of Australia than any Australian spokesman since Mr. Hughes electrified London with his speeches. Nevertheless, it is well that, Australia, should realise that there is an anti-Australian set in the London money market. The market prejudices are far from having any connection with politics or representing the British attitude to Australia, but are concerned with money power which must naturally resent the extent to which Australia has confounded every gloomy prediction from the London market and has burnt the fingers of market manipulators on many many

occasions.

In Australs, the failure of the London loan should not be regarded as any unhealthy sign. It is rather an advantage. is tells our politicians that they must reply upon the local market, and to the extent that the local market is unable to finance Australian schemes, we must tap other sources in Australia. Moreover, it should be realised that London loan figures are deceptive. Wehhye borrowed £7.000,000 in London, but the Australian debt ha,«,beenjinpreased. thereby by £8,730,000.