COMMONWEALTH LOAN

Hokitika Guardian, 23 January 1929, Page 5

COMMONWEALTH LOAN

(United Press Association. —By Electric Telegraph.—Copyright.)

REASONS FOR POOR RECEPTION

LONDON. Jan. 21

The "Morning Post’s” City editor says: "The result of the Commonwealth loan is doubtless a reflection, to some extent, of the effects produced in the investor’s mind by certain aspects of Australian borrowing. Though the unification of borrowing control through the Loan Council now established in Australia, and the fact that the Australian authorities are thoroughly alive to the necessity for keeping within hounds, constitute the best guarantee that in the long run, faith in Australia’s future will not go misplaced Experience with other issues may have induced some to await the closing of the lists in the hope of buying below the issue price. But Australian stock lias seldom for long remained at a discount, and has quickly passed the permanent investment hands, for there is apparently an unsa tin Lie demand for trustee stocks yielding a full five per cent.”

(Received this day at 12.25. p.m.) LONDON, January 22.

The "Daily Herald” says as nnvcipalcd, the Australian loan had a poor ret option. It will take some time f* t tho market to absorb the amount. P.'ie paper hopes Australia will now give tho gilt-edged market a suffice it vert and make easier any possibiV.y 'or Government conversions.