AMERICAN MONEY

Sun (Auckland), Volume 1, Issue 16, 9 April 1927, Page 2

AMERICAN MONEY

NEW SOUTH WALES LOAN ATTRACTIVE TERMS MAY BE MADE By Cable. —Press Association. — Copyright Reed. 2 p.m. NEW YORK, Thursday. The report that the Equitable Trust Company had purchased the New South Wales loan of 25,000,000 dollars is officially confirmed. Within a week or ten days it will offer the money to the public, announcing the terms. Wall Street observers, wrhile sceptical that the net return to New South Wales will be £94 or even better, contending that the intrinsic conditions for marketing foreign bonds to the consumer in America are such that to underwrite the issue at these figures is unprofitable, admit that the expectation of becoming permanent American financial agents, or advisers to New South Wales, may induce the Equitable Trust to offer exceptionally attractive terms in hopes of securing the State’s future American financing. It is believed, furthermore, that the Equitable Trust group has received an understanding that this will cease.— A. and N.Z.

LAND TENURE

VALUE OF LEASEHOLD RESULTS IN OTAGO That a good Government lease, involving as it does a small initial outlay, gives a greater security of tenure than the freehold system was the conclusion arrived at by Mr M. R. O’Shea, B. Com., during a course of an interesting address on “Land Tenure in New Zealand” delivered to members of the Auckland Agricultural Science Club last evening. f Dealing with the various systems or tenure, of which there were approximately ten in operation in Ne' v Zealand at the present time, M r * O’Shea spoke only in regard to conclusions he had arrived at after a considerable experience of the land tenures operating in Otago. ~ While formerly not the case, »ai » the lecturer, most leases could now be converted following legislation enacted since 1919. In Otago the systei of disposing of a leasehold gave a buyer a far greater chance oi judging his possibilities of success. Properties were sold as a going concern and the price based on so muc per head of sheep or cattle carried. In Otago his experience had bee that the leasehold system was a fair one, which had no considera disadvantages. A good leasehold ways offered greater attraction buyers and had the. additional a vantage that it did not require heavv initial outlay of capital . nee b for freehold. Thus, the occupier wa» left in a better position financially work the property to the greatest a vantage. It was purely a question finance and a leasehold tenure .grav man more ready money to put into * property. If a lease did that t**®. liad much to commend it and certa - • under the present mortgage s ' , ir stv when it came to a question of sec a of tenure the speaker’s expenenr _ Otago had convinced him that • * hold was not what a good Government lease was.