OUR LOAN MONEY.

Stratford Evening Post, Volume XXXV, Issue 42, 18 February 1913, Page 2

OUR LOAN MONEY.

MR ALLEN’S ACHIEVEMENT. In financial circles in Dunedin (says the Star) there is a consensus of opinion that Mr Allen has made a brilliant coup where at best bnly partial success was expected. One gentle r man, who is in constant touch .with the llow and ebb of the great financial tides, expressed his surprise' with unparliamentary brevity: “How the did he do it?” He proceeded to explain that when people at Horae were getting 5 per cent, to per cent, on mortgage, and were lending to Canada, South Africa, and the Argentine up to 6 1 per cent., it was almost incredible that on a high and cautious market Mr Allen should have been able to borrow at 4£ per cent., which is the percentage at which the transaction emerges. 6 “Even if all charges are not included in that,” he continued, “it will not bo more than £4 5s (4J per cent.). I think it is a marvellous bit of financing.” Asked if ho could explain the comments in London papers, ho expressed the opinion that they were inspired by financial agents who were not in the deal. It was evident from the cable messages that Mr Allen had been able to get the money without the, services of some of the usual underwriters, and he considered the remarks ill-timed, considering the way in which New Zealand had spent her money to prove her loyalty. “However,” he concluded, “the terms upon which the loan was arranged sufficiently show the high position New Zealand enjoys in the London market.” It is expected that the success ot the loan will have an almost immediate effect of easing the price of money in New Zealand.