THE VICTORIAN LOAN

Ashburton Guardian, Volume VII, Issue 2046, 25 January 1889, Page 2

THE VICTORIAN LOAN

(MB PRXSS ASSOCIATION.) Lobdon, Janairy 22 Mr Westgarth states that the manager of the London and Westminster Bank is disappointed that the Victorian loan did not bring the highest price yet recorded. , The reports, however^ received, by fte mail yesterday revealed the unexpected acuteness of the financial reaction m Viotoria, and private letters announced several failures were impending. The news unsettled smaller investors who were depending on an advance. Brokers and* bankers admit the principal cause of the loan not realising the amount expected was a tacit conspiracy among brokers to depreciate the loan, because tb.ey were alarmed least a high premium should deprive them of a margin for reselling the stock. The brokers are jubilant at the result of their tactics, and expect to onload the loan at a premium of 1 per cent It is generally conceded that so low a minimum as par was unwise, and flaat 102 would have been preferable, and given the loan a stimulus. Mr Westgarth again states, his belief fchat a 8 per cent, loan would have been better, as the brokers dislike stock on which they have to pay a premium, finding it difficult to get rid of it at p profit. The livelier the speculation the better it is for the colony. The " Standard " confirms the "bearing" of the loan by brokers. It says, however, the average price is dear enough m all conscience, though the last IS' ew South Waleß loan was a little dearer to the successful tenderers. It is expected colonial stock will rise, sincp the success of one colony is beneficial to the ptherg.