BORROWING IN LONDON.

Dominion, Volume 7, Issue 2001, 7 March 1914, Page 4

BORROWING IN LONDON.

i Ike failure 9 i Canadian 4 per I cent, {ami for i!5.,.G0Q,000^. w.b.icli' Was [ offered tojf 8-übseriptiw. 4«riiig the/ week, at the price of 09, directs attention to the nnpertaififcies .at* the. money market, and to the fact timt the O'utlopk for the borroweris rt.ak so rosy as seemed pwbaljla .'a-, -fc\¥■ weeks ago. The $ew, Zculaikt .loan of £-i,,m,6Q0 was subscribed fivefdid' in ninety minutes just about five weeks ago, and the West Australian Joiiti im MfiQQSQd at .£SB 10s, I also subscribed fivefold. Th£ South Australian loan fop ivliieh was .issued ftt paA 'failed to ; scoeivo pubiie and line underwriters had to find w $m eoiit. I of the amouat. South. Af act fcjlW!ed \vMi a 4 per cent loan for £4,000j09Q, at &98' 1D5..,, iiwi the- tin- ; dcrwritcrs had to taja} up ■ 80 per .cent, of the issue, and now the. ttqde.fwi>ksjs of the Cana'diaii.' .Ipsh havo had to. provide. 78 per cent/ of the issuo; These th.re:e .successive f.ail> tires are an indication, ite-fc the' 'money niaritct ig not so favourable as the earliest' jsaues seemed td indicate, and an examination of "sii'ch factors as ar.& .available to us show that the position is riot satisfactory. The gold i>eserve of tho Batik of liigland is being- steadily drawn, upon, and yet just now the nictal should, be accumulating. The Bank has been hi Cud to pay a premium for gold to secure- supplies.. flic- price of bar gold is £3 1% M., and the Baiik of England hira been .paying a. shade more . to secure possession of the new gold corning on tfe ftlilfkefe Sin Feus ScHUStEI?., 'the chairman of the union of lo.ijdoii and Smith's Bank, ai, the mee%g of shareholders on January 21, lejsnii.rkiiiß oft the money market, said: "'(The 'impending clemaiujs fwt» the East of Europe, and from- other countries outside Europe* appeared yet to be. great, Thins money wxnild still be in ' request and itie .proeeeds of swell issues should in tetany ifl* stafiees give a renewed' stimulus to trade. p If in some dkeetious, the out* look was not so hopelulj in others new opportunities might arise. Several va.st enterprises which had" niijcle great dcni:uMls on the wows markets of tlin world* such as the Panama Canal suet the TianS'C'Qntitxeukl Railways of Qsjiadj, wete approach* ing completion* while the demands, of the iicwe;v count vies, ai'jd %ncciaJly of our colonics, liadbeeH mattilj'' for pvethictive expenditure, The period of fruition, a'uet sooner o* Jate'r set

in. Thus, even if n rcactwn took place._ ho saw no reason to apjireheiid that it would be of long dui'atkint unien.i uneii |x-cted political events occurred. If wily 'iadftsttjalj as well as interantioHal, peace was maintained, lw looted forward to a further devdopraciit of ijit-erjiaJional Commerce and' witlv it that of the United Kingdom, While the/tendency was towards greater ease in the money market during the ■eo.niinj: sis ■months he saw no cause to .anticipate very low rates, lor he 'believed they might still expect a, period of activity and revival in some tjiiar* tors." It is somowliafc fortunate for Jfev EsaJand that the Minister of Finance was able to seize tipon tire psyqliqlogi»al iflo-meui' and secure,'all the money needed for development purposes. The temporary steingeney of the London money market will $Qb affect tis to any _esfeiit, if at all, and !'.y the t;i'.i.e in j s ttc-'e&ssajry to float kmas for repaymeat of matm'ine loans the rjiarfcot will probably hWe worked back into a ■condition el Msiness.