WELLINGTON NEWS

Hokitika Guardian, 20 January 1926, Page 4

WELLINGTON NEWS

SHARE INVESTMENTS. , ‘

(Commercial Correspondent.)

AVELLINGTON, January 18

If the business done in the first week of the new year by the. Stock Exchanges is anything to go by then it seems that the current year will see great activity. But a week’s business is no certain guide, although it cannot be neglected. Obviously there is money for investment, and the investors seem quite content with the small returns that are to lie obtained from investments in shares. The securities which were fashionable before the holidays are still strong favourites, and this applies particularly to banking and brewery shares. AVhcther the Stock Exchanges are to handle the bulk of the investment capital must depend upon the offerings of other securities sufficiently attractive to arrest the attention of investors, but such securities are not yet in sight. If they come on the market at all, and many people think that they will, it will not he until after Easter when the country will have had ample time to size up the true economic situation. One thing, however, seems certain and that is that the year will witness a great mining

gamble. AA’lien times become a little difficult there is always a tendency for gambling to increase. : It is stated that the construction of the dam at Lake AA’akitipu where it flows into the Kawarau River will ho completed in April, and the dream of 60 years ago will he in part realised. Tn the Sixties of the last century a vast amount of gold was obtained on

file banks of the Shotover, Arrow and Kawarau Rivers and the miners of those early days longed to divert the Kawarau River and expose its bed where, in their opinion, there exists untold accumulations oi' gold. Some of the leading men of the day as well as seasoned miners hold the most extravagant views concerning the Kawarau riverbed, and to a certain extent these views obtained corroboration when the dredges known as Hartley and Rilev and Electric scooped up great quantities of gold. Claims on the Kawarau River have been floated into companies and they are scattered all over New Zealand and Australia wlier capital has also ljeen secured. The nearer we gel to the completion of the dam the greater will he the interest, and if as the river subsides gold is obtained from the hanks ns many think will certainly ho the case, we may expect to see a gamble on a fairly large scale and very widespread, for Australia will be drawn into file net. It will bo impossible to

stop such n gamble in connection with this project which has intrigued the old miners and is hound to attract hundreds of speculators. It is remarkable the number of staid, hard-thinking men. who have taken up shares. They admit it is a gamble, but a reasonably fair one, with the odds slightly in their favour. LONDON MONEY. A week or so ago it was announced that a Queensland 6 per cent loan for CLol.'O.OOll and a South Australian 6 per cent loan for .C 1.600,000 had been

underwritten, and now it is reported that the underwriters are left to nurse 63 per cent of the Queensland loan and 03 per cent of the South Australian loan. These results are, in striking contrast to the two foreign loans that Mere floated in .London a few days earlier. A 7.) per cent loan issued by the Hungarian Mortgage Institute was snapped up in a few minutes, and a 7\ per cent, loan for JM.000.000 issued by the San Paulo Coffee Institute was scrambled for b.v eager applicants, the scramble resembling a football scrimmage. This difference in treatment does not moan that the credit of the borrowing Australian States is impaired, tint il does indicate that investors are looking for a high return. To got any sort of a chance on the London money market foreign borrowers must oiler very attractive rates, and the overseas dominions must compete with the foreigners. Alter their experience with the Queensland and South Australian loans underwriters will he very diary of lathering other similar issues unless the terms are made more attractive. It is probable that London investors now require 6 per cent or at least per cent from the borrowing overseas dominions. New South AVnles is to go on the market almost immediately for G 0,000,000 and it will be interesting to see what terms this state must offer to secure the credits.