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Hokitika Guardian, 11 September 1925, Page 2

Owixi. to hick of support the syndicate which floated the Commonwealth loan in New York ua- di"olii*d. and the bonds which had been selling at broke two points on the exchange last week. The issuing ol toreicn loanin New York is much more difficult than linancing in London, for the American authorities impose certain conditions. Every foreign loan i-Mied in the I’nited States mie-t he approved l,v the Treasury. In London an i"t>o like the Commonwealth loan would he underwritten and then otl'ered to the public for subscription. Ol the last Commonwealth loan of £•_*WKKUKit> issued abroad. £S7HSO.(Hit) was raised in kondon and £lA.li:i(l.<)<>U in New Yolk. The moiety issue ill l-ondon carried •> per cent, interest, and was issued tit

£i)i)i, pci emit., hut with the turn of £1 in the List interest, payment the actual price was £OB 10s. The issue, was of course, underwritten. Ihe amount issued in New A ork was for 7,j.01:0.000 dollars interest at percent. In the I’nited States, loans are not underwritten as in London, hut are purchased outright by financial houses either singly or in groups. On duly 17th. last the Morgan Company announced tlm purchase of 75 million dollars' worth of gold bonds trom the Commonwealth ol Australia. I he.se bonds carry 5 per 'cut. and have a currency of dll years. The price paid for the bonds was not dis'Tosed hut they were offered for sale to the public at !)!U per emit. The syndicate has apparently not keen able In unload on the- public, and consequently the syndicate has been dissolved, which means that the members are now at liberty to sell the bonds at any price they mav choose. Ihe loan did noi carry a sufficiently high rate ol interest to he attractive to the investing public for most of the foreign loans placed in New York during the last two or three years have carried ti per cent, to 8 per emit., except Canadian loans which are in a different category so far as New York is concerned. It is interesting to note ilia! whereas iho portion of the Commonwealth loan floated in London is a trustee security in Britain, the £IS.(XMI.tXXI Honied ill New Yolk is not on the trustee list.

Tin; marked progress ol South Most land of Into, justifies the pa-t faith i

.eat territory. 'I lie district is eoiiiin; icon- and more into its own and :e nr cess i- improved the locality must ad vunee. South Westland has n inns

valnah'e nssei ill the limber stretching into the far south. Il is by degrees only that the n--els eon lie brought In profit, and the eliiel aid will tie improved i ilea ii- ill trail'll. I lie (■overnMn a i!t policy m again-t extending the railway into South Westland, and aiding the development ol east tracts ol Crown lands. It is a policy gientlv to lie regret Led. and one which this panel lias opposed over and over am. Ihii we were as one crying ill the wilderness and there wa~ no summi't to the opposition to the injury being done the distriit. However, the position will lie realised bet ter now I hat Ihe developments 111 the ‘lll llt are *'| na 1 to what the tnreea -I s were. to the absence lII' a railway, the next Lest means of mm mg the limber will he by slopping. The Oknrito proposal lias a great deal to commend it. il reasonable action will he taken hv the Gov<•111 hum 1 1 . Apart from the timber, there are also the mineral and scenic resources of the southern district. It is impossible to believe that so great a

stivti'li of coilst lino is without stoics of iniiiorul wuiillli. when wo consider wh:it hits Icon iiiul wl'iit is being won fmm tlio northern purls ol West In ml. Miner:)l returns of great v;ilue must yet eome Iron) the soulii. Iho rich gold yields it lone the henehes nil poinl to 001 1 1 in the matrix if the luetilion could he founii. There Inis heon no systeinntie prospecting in the South, uml the privnte enterprise luts never lieeil long enough sustnined. 'I here is room tor policy notion in regard to the minornl wenltli ol South Wostlnml. The scenic clones ot the south, wo ure persumleil lire not to he excelled nnywhere in the Dominion, Bui WeslInnd having the coeds should ndvertisee lhem to the fullest extent. The scenic nttrnctions of Wcstluml do not receive the publicity they should in (un ci'll lit. puhlient ions. A hool.lct is hel'ure us iust now proposing to refer to the nttrnctions of New Zenlnml. yet West In ml is ignored nhsollltely. This should he remedied nnd in other directions the fullest puhlieitv should he given to the scenic nt l rnct ions ot South Westlnnd.