RUSH FOR LOANS.

Dominion, Volume 7, Issue 1990, 21 February 1914, Page 8

RUSH FOR LOANS.

WHERE THE MONEY COMES FROM, -

BRITAIN'S GREAT STRENGTH.

Since the- beginning ef federation, the I public inilebtecliiess of t-lie AustrflHan ! States . ha-s inrtcased ,- by • "jjearly I £100,000,000. It has - gon'o' u{i from 1 £203,518,275 iu;-1901. to' £2&4,482,164 in 1913.- : -..-.■. Tho "Sydßojv Morning Herald" points > out that in that- tims the'■iwdebtedriess of-.the martens States has:-i)teflasefl as ! ■follows:—Ncb- Sonth Wales, £38,809,501 ' (from ■ £67,3131.246 •. • to- '£}.06;170 ?47); | Victoria, £12,705,449 (£50,071,270 to £62,776,724); .Queensland,-: filcLlSS'JlS (£38,416,614 to £55,604,733); Sotttb Australia, £3,609,078 (£25,448.805 to £30,147,883};' Western . Australia, £17,567,006 (£12,709,403 to£3o 2<fi,' 436); Tasmania, £2,09-4,636 {£B,SILOOS to £11,500,0-fl). • ■" . ■ And, adds the "Hcralcl," we arc still ! borrowing. Just lately thefo-has teen an almost.unprecedented rush for bane —a rush iii-which ffiany countries are sharing—on account--of the swMen favourable change in the ttrouey market. During January th.e loans raised on the marfofc for the Goverßinents of ."Australasia, ■ Can.ade,' and India, and the, railway.companies.of Canada and India. escee<le£l • £18.000,000, • compared with.£&,050,009 in January , 1913. ■■.;,. .-..■....'■* Tho "Wcsteinst-er Gazette"- remarked j recently.'.that it was ■ diffltfult Us to- ! call when thfrre: was ■ ever'.such, a -m»voment as at pfeseftt -in the m'oney ear- ■ Kot. , Large houses are Iniyinfe Vm.U-io best class, of EWttritH.-s'in.bleclcs of 50,000 -qr-ISe.OOO, . instead /of ■ ■ 20,009, nnd tbis-is bchifr replied aa.T. ■ Money is being.lent.in the market as low ns 1 pg. r con t w j,i[ o discounts, arc below 2 .per/cent.: i- ■ Turning of the Tide. • i ...Mr. Tves Guyet/'the" J'xmph "econo-' mist..quite ■recently ptedfctcd- ilftt- tliere wquld.be an easior mark-bt, eaid, -would tafce plaeflas's&n as the waiting policy' , had coaio ctid. European- countries 'for some-time' past l a V,. h W-, a /,"'•". of «T -scares.. Th o Balkan troubles, increased naval ojpenditure. tho material, i-ncrcasmg": of-' t .the trench, land -forces,;, and ' tho .■tofre'spondingly heavy espenditure cin' tl-ife military, forces of .Getni-siiy—all'" these, tninp-caused iiMfist, and made-the-capitalistic class; firft-w its pii-r.se-s.trin*s white ilie sm a!ie* CapitaHsls hoarded thoir. gold. ; There has tteen-.much.flf this hoarding of,-Rold-m la-mpe of late. - .■■.Etft now the war is.over in, th fc Baikaus,.ana the rumours of ■' war, ebowliere. fcaW gone! .and capita] m.ust cam.inter-e,B(f;h / :/ . ■~....,..- Cpitinfel Loans.;.\ / e T]«_6um^f.i2sfßop t oop wa ? sutscribclosed: within 90 mmtet after m 'opfefrom other parts of tte.Unitel. Kingdom £^ ! nm U s ' iss »«4 a loan of ±,2,000,000, heariiig 4 .p%:r" cent: ■Jetferest. at ; par., ■ Oom.menW.ng : ,on ; this loaiy:tb South■■Auetrahaß».Pfemref., .Jlt-. ; 'A-li &' Jiphert, that.has been.--obt e iri(?d id .rceen-ft--dates by any' State w. tlio.Cammonwoajtili, and it compares. very favourably with., the 4 ' per cent loans; jiecentls South Wales .at .fiW, Victerra^^vfeeiv centlyby Wester-a Aijstr-slia at £-98 IDs. Iho success of'the loaii is a pragf 'oi Hie. advantage ofoiir hnvhru waited, until tno/tnarket-wjis, favoura-fiTe, iaihor than i rushing m recklessly at al{ risks and at all hazards." • ■ -. ■ .': Tho New; South- Wa-b-s- loan deferred to by r air. P*ako was • for'' £3 s ODR s 00&. the \ictonan,foj. £1,000.000, and' Mi'e : JVesterii AustratiaEi Mt £-250.0700t)v The Victorian loan was- suteibiid thrsefold, and it.was nji-no»nccd in- the,cables on January,2l- that-this -was,the'-first '.fcfojo [or. sis-years thai- a cofomal' loan h.-M been.such a suGcess. One of tfe-fin.an' cial.riewspape.rs- expressed -3, : %r' tta* the-success of the loan wouicl stimulate so many ■•borrowers, t-hafc congest.iou Would again result, An-ptJifrr paper femarked:, "The booljs of,the hrobrs ar«* ftill of itivestmgnt-s- orders,.: a..nd;t]i6-pos!' tion onj-the- Stick • Exchange;.is. more bealthy thau for ni-aiiy. year?." ' _Other recent loan's afe..ffcas!s of the City of Auc-ktand (41. p Cr c j n t 4 floben-

hires, amoiintiiig to £-224,500, at par), and' the; Melboar.no' Electric Supply Company, Ltd, (£150,000 worth of a .per cent. debtnures, at 975), both of which were over-siibsorfbed. . . ■ Foreign loans. ■." .-' .These are; all 'colonial loans, and..t|igr& aro rumours .of-aa impefidjng'.lndifiii loan oft £10,000.000. Soino large foreiett loans aro also op-ing iTo&ted at the present time -A Prussian ■ loam, of £JV SOOjOOO; bearing interest.at 4 p.er tent., has been subscribed ■sevoutv«iwo>fold; and a further 4 per cent, loan , of £10,000,000 is:to be issued at 86J, '■ J' 4 per cent. Russian railway loan of £SG',QGO,». 000,. at about! i>3, veas issued on February 15. Contracts, Jiay<3 been signed for a Greek loan- Qff £10,000,000 lit 5 per cent. A total of £7,000,00.0 was offered in Paris, £2,000,(100 in Lbnta at 92, arid th<>. balance in Groeco.. . It is .also rejMrfe'd that Ite iMgtaft Government,is issuing a.3 ]iereerit;; : Joint of £12,000,000. ill liondttn. at 77. • ■ : ■

Whero.thD Mtfncy G&ni«s From. ~, In December last Sir. (Jeorae Parish, ono'ofthe editors of tlio '"'Statist," speaking to members ©f-.the Canadina Club at pttawji, pointed otit that iii the last 60 years Great XJrit-tyiij had found capital for colonial and fbreigfi countries amounting to s : ometli.i(ig like £3.500,000,000. Engtond, in this .period, had biiilt tho railways of the world: British.interests in Canada excsedwl'oGO millions ' sterlihc, aiwl . in the UniteiJ States about 800. nriiHons., The money for tha railways of sfe*iedf cairieiftronv Londou'. "We haVs built nearly the wholo of the Tailwata of 'Rmil/Argeu,. tina', Australia, Africa-, and .India," he eaid-r"in ■. fact,. of almost ■crory . otter country there- is eytsido of Eu*op©, ■ ft? Veil as a part of tin; iailsfays of Europe itself.. -~ ■ , ■.:■'■■■ "■ffhat ;is. llie-sifiiation today." ■>© proceeded , . "Itt tlic first 11 months of [ tho current yea.r we have raised in London a sum of no Jess than 223 jriiJliotis sterling for new'sefcviritirs,- ani by tho end of the j - ear iji.tlw 240 millions'sterling wiJTliaWbeen rawed in the' London niarket for liefr secia'u ties. Tliis is» greater sum than to over'before bee-fl provide by the British people, and ef this ij'reat very close to 200 million* will have been provided for colonifli sad loroign cmintrie.s. Now, think of- the situation. • Think'of the countrv that was s-apposPd to he drcndetit, that nfter moetine the whoTe of its own expenditure?, after providing itself with tho capitnl it needed: for tlw erection of houses, tho fxfensfen of its factories, tho huiMing of sliips on an unprecednnW sealo, 'has 200-millions iv '.tear to lend t<l countries outsido Irhr own liorders; Yen will, 1 thiiiic, KjaKso thni. England is. not yet a. back nnmiipr. "It was supposed , that, wo w-er£' living on our.capital, that we woiiltl not hnvo tho money-to-lend. Wo h.avo'i-u. tlifl ourrent year, T am giad t<7 say, suwtl a siirii of not far short of "fOOiiiilfmns sterling.... InotW word's, .tlw a&lftsoa to. the wealth of Great Britjin in tiio current year will lie aJionf £400,600,000." ■■. - •.