RECENT LOANS.

King Country Chronicle, Volume VIII, Issue 643, 14 February 1914, Page 2

RECENT LOANS.

Following upon the successes registered by the Victorian and West Australian loans, it was certain that the New Zealand issue would receive hearty support, and the subscription of £25,800,00 fur a colonial issue of under five millions is probably a record. The Vic'orian loan was subscribed threefold, and the West Australian loan was over-subscribed. For the New Zealand loan the provincial applications were shut out, and, if these were included, probably another £3,000,000 would have to be added to the total. How much of the large sum offered came from syndicate stags it is difficult to say, but that there were many such operations seems very probable. These syndicate stags usually apply for large blocks of new script that is likely to go to a premium, so that they can sell and make a profit. Judging by the sum tendered for the New Zealand loan the syndicatesa re not likely to be allotted more than 15 per cent. Assuming that a syndicate submitted applications for £3,000,000, aceompaning these would be depusits for £15,000, which is 5 per cent, on the amount tendered. If the syndicate is allotted 15 per cent, of its application then it would receive Bcrip for £450,000. The issue immediately went to a premium of £l, and if the syndicate Bold it would have secured a profit of £4500. "Stags" are constantly operating in thiß manner, and they are likely to be greatly in evidence for a time.

Five out of the seven States of Australasia, have appealed to the London market already thn year, and the amounts borrowed by each show as under:—New South Wales £3,000,000, Victoria £1,000,000, West Australia £2,000,000. New Zealand £4,500,000, South Australia £2,000,000, total £12,500,000. Queensland and Tasmania have still to venture on the market, and their appearance may be delayed until May or June. The bulk of the New Zealand loan is for domestic purposes, and the expenditure of the money will stimulate business activity throughout the Dominion.