COLONIAL BORROWING.

Taranaki Daily News, Volume LI, Issue 188, 30 July 1908, Page 2

COLONIAL BORROWING.

NEW LOAN ARRANGEMENTS. London, July 28,

The Financial News declares thai) SouHi Australia's new loan arrangement has greatly surprised the city. The Agent-General declines to make any statement at present. Australian bankers generally are not unfavorable to the change in tlio method of borrowing. The adherents, of the old system have calculated that, if a loan were offered here on the ba»l« of re-payment in thirty years at 89, the cost to the Government would be £3 Hi per cent, per annum. Thus there would lie a saving of luilf-a-crown per cent. They compare this with the new arrangement, in which the cost is equal to £75,000 on £2,000,000 for thirty yean, or £3 15s per cent. The market for South Australian stocks is disorganised. A bad impression has been caused by Mr. Jenkins' resignation and the fact transpiring today that the Bank of Adelaide and Nevisoiij have been entirely ignored in connection with the loan. Members of the Stock Exchange and bankers condemn the sale of stock by the colony "on the other side" for subsequent issue or re-sale here. Tho practice, if persisted in, will, it ia said, tend to destroy the market for colonial stocks. Nevisous declined the request of Lloyd's Bank to act as joint brokers for the issue.

Adelaide, July 20. Sir. A. Peake, State Treasurer, implying to questions regarding the loan, said that last week the Government had accepted what it thought a good offer with respect to the balance of the three million loan which would be falling due at the end of the year. The balance was two million pounds, the sum of one million having already been arranged for. The Agent-General, Mr. J. G. Jenkins, resented the Government's having made the arrangements for tho loan without consulting him, and indicated that he thought the Government had made bed terms and that ho could have made bet* ter arrangements The Government informed Mr. Jenkins that the responsibI ility was with the Government, and all that ho was required to do was to facilitate the terms of the agreement whijh I the Government had made through a local firm. The Government urged upon the. Agent-General that the agreement must be signed within a certain time, and that the business must not be jeopardised by delay. The Government had been much vexed at receiving a wire stating that, as the agreement had not been signed and the terms had beun inado public, Lloyds had withdrawn from the loan negotiations. The Government regretted this very much, and felt thit a thorough investigation must be made.The Government maintained that it was' a good financial bargain for the State, and regretted that It had been made abortive.

Inquiry is being made into the failure to have the papers ready for signature. The Agent's resignation has not yet been accepted.

NEW ZEALAND'S HEALTHY POSITION. By Telegraph.—Press Association. ' Wellington, Wednesday. Questioned regarding the Sonth Australian loan, the Premier said: "As far as New Zealand is concerned we are all right. Our arrangements are made for some considerable time ahead. We have enough money to go on with for some time yet. There is no cause for anxiety hero. We have £BOO,OOO worth of resolve securities As the outcome of our financial arrangements, and, if a large of money is wanted, we can get it t "nee without going on the market.'*