The million and a Half Loan. .

Manawatu Standard, Volume X, Issue 4, 2 June 1885, Page 2

The million and a Half Loan. .

[Wellington Paper.]: V The present time would appear to be an exceptionally favourable one for floating the million and- a half loan, and it is, we think, almost a pity that the North Island Trunk Railway loan of one .million has not been offered at the same ' time. Money is evidently exceedingly plentiful just now, and consequently cheap.. , It i-|_ very doubtful whether a better! opportunity for raising all the colony wants will ever occur. When the-rlgst millionwajs floated early m January last, the Bank ;of . England rate of d iscount was. 5 -per cent.' and the market price 4 per cent.^ while Consols were 99£. Now the Bank rate is only 2 per cent., the market rate only £, and Consols are quoted, ait lOOf. As the last loan averaged slightly over 99£, the present one should -certainly, command very close to par. Dear as money was m January last, there were then 600 tenderers for the one million ;ioan^ and v £3,985,000 was : offered. Tlie present loan is the first included m the ,tinanc.ial proppsajs of the present Government. The last one was the third million of the loan authorised three years ago, and it had nearly all been anticipated dr. pledged when the presont Ministry took office. They have, however, so far carried on the business of tho country without appealing to the English' market for funds. The purposes for which ithe mil-: lion-and-a-lmlf now aakedfor is required, are defined m the Loan Act as, follows; : — Immigration, £30,000 £70,---000 ; roads, bridges, and public buildings £620,000 ; telegraph extension, £30,000; .goldlields toads and water races, £40,000;; lighthouses and harbour worksj £40;000; charges and expenses raising loans, £40.000. No doubt the greater part of the money has already been; anticipated, or is required to meet liabilities} entered , intp, but it is fortunate that the .Colonial Treasurer has been able to bide his time, so ad. to seize the favorable opportunity which has now arisen. :