THE NEW ZEALAND IMMIGRATION AND PUBLIC WORKS LOAN.

New Zealand Times, Volume XXX, Issue 4403, 30 April 1875, Page 2

THE NEW ZEALAND IMMIGRATION AND PUBLIC WORKS LOAN.

(Financier, March Ist.) Messrs. N. M. Rothschild and Sons have received authority to open subscription lists forNew Zealand Government Debentures for £4,000,000, under the Act of 1874, which required £3,000,000 to be expended upon certain important railways, £500,000 upon other public works, and £500,000 upon immigration. -The whole loan will therefore be for reproductive objects, and herein is the peculiar feature of these issues—namely, that the proceeds are v not devoted to supplementing deficient revenue or to providing armaments, whether for defence or attack, but in developing the resources of the country. Nearly the whole of the debts of the British Colonies are represented by investments of Imperial importance and of undoubted reproductiveness. The policy of making loans for the construction of railways and other public works is based upon the soundest economy. Money raised Tat 4 J to 5 per cent, can be most economically applied to undertakings which not only yield that or a. higher rate of return, but accelerate in a. degree not known to former generations the opening up of fertile tracts to populations - which themselves, in turn, create wealth. It is a great point that not only is the work of a. generation compressed into a few years by thisagency, but the cost of these permanent advantages is thereby spread with some degree, of fairness amongst the participators therein. We pursue the same policy in this metropoliswith our embankments, viaducts, markets, and other great works. These are the considerations which are calculated to deprive this new loan of any features of objection. Nocolony is more progressive or more prosperous than New Zealand. Almost the entire population consists of business men, and what they see their way to employ profitably, we may lend with advantage to ourselves. The particulars of the issue are as follows: —The debentures are for £IOOO, £SOO, £2OO, and £IOO each. Interest at the rate of 4i per cent, per annum is payable by the Crown Agents for the Colonies on the Ist February and August, dating from this day (the Ist of March). The price of issue is 94 per cent., of which 4 per cent, is to be paid on application, 10 per cent, on allotment, and the remainder by instalments extending to August next. As in the case of the issue made last year, repayment at par (100) maybe made any time after five years, by the Government giving six months' notice, and redemption is to be absolute at the expiration of thirty years. The subscription list opens this (Monday) morning, and will be closed "on or before" Tuesday afternoon. As the net price of issue is reduced to 93, and as debentures subject to identical conditions were quoted at the beginning of last week (i.e., before this issue began to influence the market) at 96 to 97, there is evidently room for a premium, or market bonus, of sufficient amount to remunerate and attract subscribers. We will only add that we are glad to see the stamp of the Messrs. Rothschild placed upon this colonial loan. (T7te Tims, March Ist.) The prospectus of the New Zealand Immigration and Public Works Loan for £4,000,000 nominal has been issued to-day by Messrs. Rothschild. As we stated two days ago, the issue priceis £94 per cent., or £93 if the whole bond is paid up on allotment, instead of in six instalments, and debentures will be issued for £IOOO, £SOO, £2OO, and £IOO at that price. The ioan is secured on "the Consolidated Revenues of New Zealand," which revenues have risen from £900,000 in 1870-71 to £1,400,000 in 1873-74.

The. prices of the Indian Railway Stocks are unchanged, the quotations being the same as_ yesterday. In the colonial market the prices of New Zealand Bonds are soinewhat unsettled, in consequence of the new loan, the prospectus of which has been issued this evening, although there is no further fall in quotations. Canadian Bonds were a little in request, and there was inquiry also for Cape of Good Hope and Ne'w Brunswick Bonds. (Daily News, March Ist.) Subscriptions are-invited by Messrs. N. M. Rothschild and Sons for a New Zealand loan to the amount of £4,000,000, in debentures of £IOOO, '£soo, £2OO, and £IOO respectively, bearing interest at the rate of 4J per cent, per annum, payable on the Ist February and Ist August in each year. The price of issue is 94 per cent., and the principal will be repayable at par within thirty years. The loan is secured on the Consolidated Revenues of NewZealand ; and £3,000,000 of it is required forthe construction of railways, the remainder being, in equal proportions for other public works and immigration. A coupon will be attached to the provisional scrip for the, pay? : menton the Ist of August of.'five months', interest. The list opens \on Monday, and closes, on or before Tuesday, the 2nd of -March. [ ' -" ■ - With reference to the .above issue, it may, be mentioned that there has- been a good deal of discussion lately oh the public works policy pursued by the'New 1 Zealand Government, and the magnitude of the loans it has required. There is no doubt that .New Zealand has become largely indebted in proportion' to its resources. According to; a -statement by the Premier of the colony, published in Fraser'a Magazine for February, the "colonial and provincial debt amounted last June to £12,500,000, or £43 10s. per head of a population number--308,000 ; and the annual charge of this debt was £2 10s. sd. per head,, or about £770,000 in all. The loan now issued will increase this indebtedness to £16,500,000, or about £53 per head, and the annual charge to £950,000, or about £3 per head. The burden is a considerable one upon a total revenue, colonial, and provincial, amounting in 1873, according to " The Official Handbook of New Zealand," to/ £2,798,000, including £1,278,000 from' territory, mainly "land sales," which is a very fluctuating item, and shows a sudden increase of £600,000 in 1873 over 1872. On the other side it is stated that the population and revenue increase rapidly, the population having increased from 248,000 in 1870 to 308,000 in 1874, or 25 per cent. ; while the ordinaryrevenue, exclusive apparently of land sales, increased from £3 18s. ljd. per head to £4 12s. 2Jd. per head, or 18 per cent. —1870, however, being a year in which the revenue had fallen off compared with previous years. On the whole, the financial affairs of New Zealand can hardly be said to be in so satisfactory a state for the colonists themselves as we should wish the affairs of all our colonies to be, thoughthe New Zealanders, it must be recognised, have had unusual difficulties to contend with in their native wars, which were long mismanaged for them by the Imperial Government, and which now appear to be ended for good. As to whether in the event New Zealand - will "pull through" easily or with; difficulty, and whether for that purpose the present policy offers sufficient safeguards, we do not propose to offer an opinion; but having stated the main facts, we leave those concerned, as investors or otherwise, to judge for themselves. (Standard, March Ist.) Subscriptions for the New Zealand Four-and-Half per Cent. Loan of £4,000,000, at the price of 94 per cent., or 93 net, will he received on Monday, the Ist March, by Messrs. Rothschild and Sons, and the list will be closed on or before the following day. The loan is secured on the Consolidated Revenues of the colony, and the proceeds are to be devoted" to the construction of railways and other public works, and immigration. The instalments extend to August next, but subscribers have the option of paying up in full after the allotment, under discount at the rate of 5 per cent, per annum. The principal will be repaid at par not earlier than five years, and not later than thirty years from the Ist inst., the Government reserving the right of paying it off on the Ist February or the Ist August of any intermediate year, on giving sixmonths' notice. The applications are expected to be upen a .very large scale, the -..solid character of this security being generally recognised. .---.. (The Times, March 3rd.) In colonial securities, New Zealand-Con-solidated Bonds recovered J, at 103 to 104, and the new issue was very firm at J prem. ; Province of Quebec Bonds at 99J to 100 J, and:

VWv y**v vYnt. H*l» M M <v» $% Wev* MA i| lvi£htA\ *S\x\ pVHV* jTMWrMty \\\ Olts \»VVO »\MOt^. *ftw MdvvvriptW fet fov tho New Kwdand »<«--Awd.,vU»!f ivv IVM, V-..VW wAs ielo»d Ovi* v«o*-mh£ Viy M*«i». UoiWhiM. The wiw xs\wM\V\''AWy in j»<w>? of the v<\p\hvd SkTOvM»Ms Mid Ihe svrip It>ft oft' at I, \ ~<V,in<?Ai>i MaVCh Srd.) Th« h>l of «W N>\v 'fesland loan was closed M vw\M\ W MtW*. KotWhild and Son* with, it ix wnAowt.Vvl, KuWriptions largely exceedftte the tehi (■••> V alloHvd. The scrip aeeordftijfltf AswvTfh-mat | to-4 prem. The allotment Vttov* »ve .-■xpoctod to bo issued about the end of the week. (TVsA, March 3rd.) Colonial Government securities wow firm ati. 1 ! moderately dealt in. Now- Zealand Conw.Viated S per Cents, advanced J per cent.- to loS 4 ; Queensland 4 per Cents. J per cent, to ?1 2 ; Mid Ihwiuco of Quebec 5 per Cents. I per cent, to Oi>i 100 J. City of Montreal 5 per Cents, (ISM} advanced .$ per cent. to &S 6, The applications for the New Zealand Loan received from the country this morulug being verv large, the subscription lists were closed at twelve o'clock, and the letters of allotment are expected to be delivered at the close of tl» week. The scrip closed firm at % h

prem. (The Time/, March 4th.) The only change in the colonial market quotations is a rise of 4 in New Zealand Four-aud-a-Half per Cent. Bonds, at 95 to 96 ; the New Loan continues at prem., and is in very fair request; Province of Quebec Bonds continue in demand, and there has also been inquiry for Victoria Bonds. (Dally Neas, March 4th.) Iu English Government securities Consols were firm, but without change, at 93 to $ for money and 93J to J for the account. The scrip of the New Zealand Loan closed at J to | prem. {Standard, March 4th.) The scrip of the New Zealand Loan was quoted J to J prem., showing no change. (Standard, March 6th.) The letters of allotment of the New Zealand Loan were delivered to-day, the apportionment ranging from half to one-fourth of the amount applied for. The scrip closed at Jto | prem. (Telegraph, March 6th.) The allotment letters of the New Zealand Four and a Half per Cent. Loan were received this morning. The quotation varied only slightly, and left off J J prem. (Economist, March 6th.) A New Zealand Loan of £4,000,000, bearing 4J per cent, interest, wa3 introduced on Saturday by Messrs. Rothschild, the issue price being 94, and is understood to have been readily taken, although, as usual, there is little general dealing in colonial securities.