MORAL OF THE VICTORIAN LOAN.

Kaipara and Waitemata Echo, 4 February 1914, Page 2

MORAL OF THE VICTORIAN LOAN.

Now that the money market has turned, and an oversea dominion loan has gone off into the hands of the general investing public, without leaving a shilling in the hand? of the underwriters it is right to say that the luck has turned- As Sir Joseph Ward, has said all along there is a perpetual banking up of business and trade profits which brings the money market several hundred millions of money for

investment every year ot good trade. That being the ease it is a correct estimate that the tendency of interest will be in the main downward. From which the logical consequence is that when the money market is depressed it will be advisable not to issue, for indispensable moneys, long dated deben tures, ibut to get the money on short dated paper, maturing when there is a reasonable expectation of a favourable market, This was the policy of the Liberal governments of the pist. The "Reform" Government now in power always resisted this theory, and made much criticism of the policy it guided. It really seemed according to many critics both ''reform" and independent that the rate .of interest was destined for some inscrutable and malign"reason to be set high against these Dominions for many years to come i? not for all time. This wai thought by these authorities to apply, particularly to the present year because of the very, large demands from ioieign quarters expected on the money marker,. But in spite of the foreign expectations the Victorian loan is issued and goes off at a canter without a hitch. It-, is not a cheap loan being issued at £97 and carrying an interest liability of four per cent. But the fact that it has gone off and at a price better than the long dated commitments of the past few years proves the soundness of the policy of financing, for maikets, and indications are that the position will be bettered before long. It is in fact reasonable to expert that as money banks up its price must go down. Men however will always be talking and even on this which is a most delicate subject lequinng the most careful handling because involving the credit of the ] voniinion so greatly. What then is the moral ? .Let finance he placed outside the field of politics