THE N. Z. LOAN.

Nelson Evening Mail, Volume XIII, Issue 170, 16 August 1878, Page 4

THE N. Z. LOAN.

A letter from the Loan Agents to the Colonial Treasurer, dated LondoD, 7(h June, throws some fresh light on the circumstances under which the £3,500,000 loaa wa3 raised. These gentlemen write: — "The Bank of England, on our behalf, called for tenders. The list was opsn on Monday morning the 3rd instant, and closed on the following morning, when the applications received amounted in the aggregate to about eight and three quarter millions. The great success with which the loan met was due to a b variety of circumstances. The time chosen was particularly opportune; the Bank rate had just fallen 2\ per cent. We had selected for receiving subscriptions the day upon which the rumors in reference to the Congrees were Cdfi'med by the announcement that it would positively be held. The buoyancy of the market during the previous week culminated on the gratifying intelligence that ail doubts as to the Congress being held were at an end. The low fate of money was another circumstance in our favor, and the fact that tha Bank of England for the first time in its history, had called for tenders for a colonial loan, was not without iis influence upon investorp. It ia important that you should recognise that the success of lbs loan doea not mean thet the market is open to the negotiation for some time to come of further New Zealand loans. Too much stress should not be attached to the magnitude of the subscriptions. It is aot to be supposed that there was reallly a willingness to snbscriba to the amount of eight and three-quarter millions. When it became known that applications for the loan would exceed the three and a half millions we had to dispose of, it became evident that the full amount applied for ia each case could not be granted ; hence applications were pat in for larger gums than the subscribers actually required." The Loan agents further state : " Although not mentioned in the advertisement, we gave currency to the assurance we were authorised to make — (bat the Government would cot offer

any furlher loan in this market earlier at least than September, 1879.