Untitled

New Zealand Times, Volume XXIX, Issue 4242, 24 October 1874, Page 2

We referred to the partial failure of the Victorian 4 per cent loan of a million and a half, in our summary of Home news, in a recent issue. As the matter is of very considerable importance to us in New Zealand, we subjoin the following explanation from tho Melbourne Daily Telegraph, of the 15th insfc. :

Our new 4 per cent loan of a million and a half was not a success on Tuesday on the London Stock Exchange. Only £344,000 was taken up at the Government minimum of .£9l 7s. Gd.; and, more significant still, the total tenders were under a million sterling. A 4 per cent. loan has no attraction for this market, as Mr. Langton's " inscribed stock" failure has shown, and it does not appear to have many charms for the British market either. At the Government minimum the loan would pay £4 7s. Gd. per cent per annum, and it would seem that we must offer a little better terms than that. Russian 4 per cents, were selling at last quotations at £B3 55., or £4 10s. per annum ; Cape of Good Hope 4J- per cent., £10110s.; and Victorian 5 per cent., £lll. The deduction appears to be that though 5 per cent, is too much for us to offer, 4 per cent, is too little, and that to float a Victorian loan at about par 4J- per cent, is the legitimate interest. The hitch which has occurred will not embarrass our Government, as tho associated banks covenant to advance whatovcr money is required for the purposes of the loan, nor can any blame be attached to the present Ministry. The arrangements were substantially made by their predecessors. It is to bo observed that our 0 per cent, debentures, with seventeen years' currency, were quoted in London in July at £ll7, which gives a rate of interest of £4 6s. Gd.; but then that 13 an established loan, and the prices refer probably to small sales. Experience teaches, and to make suro of floating a Victorian loan we must in tho immediate future go one half-crown higher in our interest. Our credit is not tho loast affected by what Router probably terms "only a partial success." The check is merely a haggle for better terms.