HOW LOANS ARE FLOATED.

Dunstan Times, Issue 1190, 19 December 1884, Page 3

HOW LOANS ARE FLOATED.

The following interesting account of the transactions couUeotedwiththe Soaringof' tbq reognf ,N^w;Squthi ; Wal«« ;3iper Cent, loan isgiven in the An^ife f?«rZwlaade r: —, On the 7th October there Was a large gathering at tlie Bank of ItjuglanVi, anil shortly , after 2 o’clock Mr. GjUltttt, the Go.verhor, took his seat. Basket after basketful of tenders were brought placed upon the table, took ft ,an ; hour to merely announce the amount 'tendered for. and the price, as in all nearly 1400 tender* wel-e received. The first quarter of an .hour settled the success of the loan, for it become apparent that the syndicates aplying on be; half of dealers on the Sto'ck Exchange had taken efficient steps to.obtain more than' 1iatf(L3,025,000) of tWWtil ainoont,- individual investors. qooiparatiyely little. ” The application* amounted to Lid,630,000, at prices wyihg l from-L9B to L 92 (the minimum),--;,.iT»»derß, iftt L9.3. ; 12s Will receiveabnut 58. pp,r,ffl!pt.pf the amount applied forytHose price being allotted in full. The average price obtained for the stock was ahout-L93 13s 6d. Some; of the tenderaTvere for vefyTarge amounts,' viz., one for L 1.960,000, ojiefor L 1,150.000, two for LSOO.OOO, and.one for L 300.000, at L 93, 12s each ; one to LS6Q.OQ!) at L 93 10s, and onefor a like annttnt'Tit ; t93, two for L 200,000 each at L9312s eaoKand L931550d, - 1 for LUO,OOO at L 93 Is 01, .ten for LIOO.OOff at L 92. to L 93 18s, one for L 70.000 and.oneforL6ojooo at L 93 12s, and II for T.sQ,opd each at L 92 10s to 192 17s 6d; The organisationppt’fhe.gimhpsSfhich make it t-beii business to apply wholesale for issues Of colonial and btber etoclrt is rmark ddy complete., Great numbers otperaona.belong to a group or .fiyndtcate,:-hu| the. conduct of ! if urs is left entirely To “ah inner committee who at the last'raojueut, send in applications on behalf of the whole body at prices of which the outer circle are rig* noiant. The object of this mpde of wording is to get the very latest aspect of the market, and as far as the syndicates are c incerned,it mnstrb - said flfal great success nsuallv at'ends their efforts to avoid offering more than a few pence per 10.) above the allotment rate. I ulividual-mveato'S and their brokers are, however, liable to he left out in the cold or.ti pay a much higher price than the average. Qlying to 'the favour in'o which colonial - -Government stocks have been raised by Mr Childers's Conversion proposals, these syndicates have of late been very .fortunate. It is said that they usually have “ pawned' 1 -’ with the hanks six or seven millions of drtlonial Government stocks ; but that the buying:by investors since April last has reduced their holding t<> about two millions'; and this reduction has been effected, tdo, at very profitable prices.” - -