THE HARBOR LOAN.

Taranaki Daily News, Volume LII, Issue 73, 22 April 1909, Page 2

THE HARBOR LOAN.

Karly lust -week we announced, unofficially, llic terms ii|H)]i which the Harbor Hoard I on n would probably he issued on the London market. Yc-lcrday'.s cable from London, which we publish this morning, confirm* the iuforination we were then in possession, of, and on the whole, considering all the circumstances must be considered satisfactory. While the money market had almost readjusted itself afk-r the linaneial commotion ensuing on the American panic, other circumstance* have arisen, notable the alfairs of the Near Kast, to exercise a detrimental eilect on the market from the borrowers' point of view. The loan is being issued at 101. and will net C!I8 to the Hoard, What is not so satisfactory, although quite unavoidable, is the fact that the Ik-si ink-rest terms available are 4'/. per cent. It was hoped that, considering the exceptional iiniiirc of the security oll'ered, money might bigot at 4. nr at the dearest.. 4'/, per eeiil. That this has not been possible is, we are perfectly convinced, not ailribnUble to any want of business nciiiiH-n on tinpart of th,. Hoard's coinmis.-ioncrs in London, Messrs King ami Connctl. The position is that .€1:10.000 ha- to be provided by the end of this month for the redemption of the uuprovided-for portion of the expiring loan. Had the Hoard been in a position to "sit light" and await a favorable opportunity to raise this sum, bette r terms may.' possibly, have been procurable. The' Hoard had no such option, however, and it was merely- tin- fortune of war that compelled them to go („ the market at what has proved a not ton favorable moment. Th,. ipiestiou arises whether it would not have been advisable, however, to have merely ,-awed the C 1:1(1.11(10 for redemption purposes, and awaited a more favorable opportunity of is.,uia« the balance. Even on the present terms", a very considerable a.nnual saving will |,j made by the Hoard as compared with the expiring oppre r cent, ham, but the saving will not be so ci-nsidcrahlv as tinBoard had simguinely expected, basin" their caleulalions on'raiding the nioncv I ill I per cent, I'lider the circumstances we consider the Hoard has acted wisely in deciding to issue only £275,(100 0 f tn(l loan, thus enabling them to meet their obligations without thv necessity of'

I girthing a rale, Obviously, however, tho I proposed harbor work* will have to bo aomewliat'curtailed, though not to an extent that will interfere at all materially with the ambitious of the port to provide deep-sea accommodation. Opinions! will no doubt lie divided as to Wie wisdom of accepting the present | ■ terms, but'in view of the prevailing un- • certainty of the market, and the abso- ' lute necessity of no longer delaying tho : work of development, we are of opinion that Hie wisest course has been adopted, - and congratulate the Board and its commissioners on having safolv negotiated '. one of the most critical periods in the history of the harbor.