AUSTRALIAN SECURITIES.

Southland Times, Issue 1010, 26 August 1868, Page 3

AUSTRALIAN SECURITIES.

Mr W. West-garth reports, under date of London, 19th June ?— « The very favorable state of the market alluded to. in the last circular has been fqlh i«a.int"ft.ined, and prices are firm with a further advauoe in some oasea! The New Zealand Consolidation five per cent, loan, which ia now at 88£ to f , 1$ to !$• .premium, haa been slowly but steadily advancing in price, notwithstanding that during the last few weeks some milliona of the etook must have been issued to tho public by conversion of the old debontares. The time allowed for the conversion expired on the 15th, and the new stock ha 3 shewn additional firmness since then, The amount oonverted had not been deoiared up to this morning by this Crown Agents, but the fact that there have been upwards of 1,100 separate applications, shows it to have been very large, probably not under .£3,000,000. There has been considerable business in New South Wales 6 per cents, 1868-96, and they have taken a further rise, as usual with such securities on the near approach of the half-yearly interest date. The New Tasmanian Loan is scarce, and has also made a further advance. The old stocks, such as the Victoria Railway Loan, are tenaciously held, notwithstanding the high price they have attained, and there is consequently a scarcity of stock, and comparatively little business. The Hobson's Bay Eailway bonds are also advancing in price with the favorable accounts of them from the other side. In the prospect of further considerable Australian loans at no distant date, it is j important to note that the colonial 5 per cent stocks now command about the price of par, and that a 5 per cent stock is therefore the most suitable for this market, and may be issued to greater advantage than a 6 per cent. The system of gradually extinguishing a loan by yearly drawings and a sinking fund, as with the last New Zealand loan, seems also in favor with the investing public. By drawings in series, as with the New South Wales loan of last year, the uncertain element of the system is greatly eliminated, while the gradual extinction of the debt continually adds to the security. Another subject deserving the attention of borrowing Colonies iB the registration of these ■tocks. The public in general prefer debentures "to bearer," so that aU the loans are properly issued in this form, and any other is to their disadvantage. What is required is the option of registration to any holder of stock for the time being. As this may be eftected without the issue of a second obligation (the usual mode hitherto), one great objection on the p.irt of the Colonies would be obviated. Future loans may thus be made registrable and unregistrable by an enabling clause in their Legislative Act, and a special aci^for the purpose may confer the privilege upon all loans already issued. The registration details may be either on a fly-leaf, or by endorsement on the bond itself, care being taken to show conspicuously on the face of the document that it is a registrable security as specified by the endorsement. As most of the colonies haye already representative agencies in this country, the plan may be at once carried out. The following is the summary of changes in the prices of the various Colonial Government and other debentures since the date of the last circular. In New South Wales five per cents., the long term stock, 1888t96, has further advanced one per cent. The Victoria six per cents, are also higher, the Railway Loan by one-half, and the Water Supply by three-quarters per cent. Queensland six per cents, are about the same, except that the 1891 stock is in chief demand at a fractional advance. South Australian are unchanged. Tasmanian stock of all kinds, which is very scarce, has further advanced, the 1895, by one per cent., the various dates by one per cent., and the new loan by li per cent. In New Zealand securities the great marketable stock is now the new five per cent. Consolidation Loan. The old issues of the General Government are nominally at the same price ; but the opportunity of conversion being now past, their value is for the present uncertain. Still more is this the case with the Provincial issues remaining unexchanged, and for them in the meantime quotations have been withdrawn. In Municipal Bonds, those of the Melbourne Corporation maybe quoted as high as 100-2, chiefly on the strength of the price at Melbourne. In the Hobson's Bay Railway Bonds, the six per cents. , 1880, are as much as three per cent., and the five per cents. 2^ per cent, higher."