TIGHT MONEY.

Stratford Evening Post, Volume XXXVI, Issue 25, 4 June 1913, Page 5

TIGHT MONEY.

THE REASON OF TT. [By Et.eotrio Teeeorarh —Copyright! [United Press Assooiatto— Loudon, Juno 2. There were heavy sales on the Stock Exchange subsequent upon rumours of financial troubles. A loan has been arranged by Mr Watt for Victoria, with a currency of nine years and the option of redemption at the end of a quinquennium. It will be issued in a feu davs.

The recrudence of the Balkan troubfurther disturbed the markets. In addition to the Brazilian and Chinese issues, Mexico is shortly issuing a twenty million loan. Calls on new issues during June are estimated at twenty million, as compared with £9.950,000 in 19"l2. An outstanding feature of the Stock Exchange is its depression. There has been a heavy slump in CanadianPacific Railway Stocks, which have dropped 19 dollars in five days. The foreign Bourse is disturbed, and the German loan has unsettled the Berlin Bourse

THE SOUTH AUSTRALIAN LOAN London, June 3.

The Pall Mall Gazette, commenting on South Australia’s deferred attempt to raise a loan, says that the markets have enough to handle of unplaced scrip of many issues already arranged. They will then require a short rest. Great uneasiness prevails on the markets, f ' DOMINION FINANCE. MR ALLEN’S EXPLANATION. [Per Press Association.] Auckland, Jure 3.

Discussing the financial operations, Mr Allen, who returned from England to-day, remarked that the three million loan was raised at a very bad time. Ho had no hesitation in saying that nobody and no country could have done any better at that moment. The money market was not particularly in a disturbed state, but there was at the time a tremendous demand for money all over the world. The Balkan trouble had undoubtedly had in effect on tho money market, but not to the extent that people believed. The £3,000,000 loan was raised for 4 per cent at 98, with a currency of 30 years—so if we want it. Tho whole loan can, therefore, be redeemed by the payment of £4 5s Gd a year in 10 years.

“The amount available for public works, is, I believe, £1,750,000 ” queried the pressman, Tho Minister replied: “I think it is about £1,250,000, but more money has been raised since the £3,000,000 loan at a better rate. I have come back with definite proposals also to meet two large loans which fall due next year. I refer to tho 4£ million loan raised last year, and to the other loan maturing next year, of about 31 millions. Both of these loans are 31 per cent, loans. Those are the only ; wo loans which wo need worry about. All the others coming due within the next two years are 4 per cent, loans. I am not troubling about them at all. I will admit that tho two bigger ones mentioned may give some little concern, but that concern will disappear ! f New Zealand lives within its means and does not become extravagant—in fact, keeps up its reputation on the London money market. The outlook generally is now very good indeed. 1 think the change of Government has ■undo it brighter than ever.” Speaking of the money available for public works, Mr Allen declared that there would be, a substantial amount this year, sufficient to carry on public works at as rapid a rate as that at which we are justified in carrying "hem. “But if you ask,” ho said, “if there is plenty of money for public works I must reply that there is not plenty to play with.”