THE N.Z. LOAN

Hokitika Guardian, 5 March 1929, Page 5

THE N.Z. LOAN

A WONDERFUL SUCCESS. WELLINGTON, March 2. A leading financial authority in Ixnidon, in a letter to Sir Joseph Ward, dated January lltli. gives some illuminating comment on the money market. He states: “Just a line to congratulate you on the result of the New Zealand loan, which was wonderful when compared with many other countries, and is a great compliment to you personally. A certain company created a great boom in the city, and large profits were made in England by those who had the pluck to apply for the shares. I could have got in on the best possible terms, as a friend of mine floated the shares, and telephoned me in good time, but- T. could not see how the company could pay dividends on the inflated capital. However, quite a number of my friends made £lO,(XX) each and invested it in the New Zealand loan. It is difficult at times to follow American finance, for they pay 8 and 10 per cent for advances in New York, then luiy millions worth of shares at high premiums. They get a lot of money in England through the banks, as I understand leading American hanks will not advance more than 50 per cent against industrial shares. The wool market is good and likely to he. Bradford cannot keep prices down in face of the keen demand from outside. Dairy produce is also selling well and you should have a real good season in New Zealand.”