NEW PLYMOUTH HARBOR LOAN

Taranaki Daily News, Volume LII, Issue 89, 11 May 1909, Page 4

NEW PLYMOUTH HARBOR LOAN

AXD THE FINANCIAL SITUATION.

ihe llotation of the New Plymouth Harbor. Board's loan in London (savs the Wellington Post) must be regarded as on the whole a satisfactory undertaking. Parliament authorised 1300,00U; but the amount actually raised A\as £2/5 } UUU. The reason for raising 125,000 less than the amount ised was to obviate the necessity of imposing any higher rate tnan that now controlled by the harbor board in question. The proposition was reasonably attractive t(> the investor, for the rating area, according to last assessment, was slightly over £12,000,1)00. llie board gets Lne money at 4'/, per cent., and t-Jie issuing price was Tc-1 ill. whitii will give the board a wet X!IS. The terms are better tnan either Wanganui or \\ estport were able to obtain, ifotli paid ."> per cent., and the issuing price in each ease was £lOl. Wanganui obtained £IOO,OOO, and Westport •t'1200,000 for 25 years and 3li years - respectively. The Auckland Board, too, obtained .1250,000 at 1101 for 211 years at 4'/ s per cent, Xew Plyinoutu, having rating powers, is evidently iu better odour on the London market than Westport and W'anganui, which have not. .Money is apparently to be obtained in fairly _ large' sums to-day in London, providing the terms are sufficiently attractive. At the same time it has to be borne in mind that between now ami, say, 15U5 the gaze or the British money., Aider will wander iu this direction and remain lix-ed with some interest upon the operation of Australia and New Zealand meeting their loans as they become due. To say nothing of .New Zealand, three States of tlie Commonwealth have between this and 1015 some 120,000,000 to meet. In 1012 New South Wales has falling due at Government option nearly ..110,000,000, in 1013 Victoria has 1'4,000,000 to meet; and in 1015 Queensland will be called upon for , 112,000,000. New Zealand also has a few engagements that must be met between this and then. For how long the coffers of Britain will be open it is not easy to say with the unsettled state of affairs prevailing in the Levant. However, Mew Plymouth's wants are satisfied, because tney me small; but the demands from Australasia generally do not at present show signs suggestive of diminution. With respect to tile attitude of tne banks qumg business in New Zealand and their conservative policy with reference to advances upon mortgages, it may be interesting to state here that the New South Wales banks are now exerting considerably more pressure than was their wont some twelve inontns ago. It is true that of late there has been a slight increase in the deposits; but there is a conspicuous reduction the advances. Already there is much grumbling. During the past twelve months the demands upon the banks for accommodation have been largely increased. The brakes are now being put ''hard down." Locally the banks show uo indication of looking more kindly upon real estate in the light of a sufficient security. On land, money is practically impossible to obtain. Ou the other hand, evei t v leasonable consideration is being shown to reputable firms, and there appears to be sufficient moneV available for legitimate mercantile propositions. The money market appears somewhal; easier; but (i per cent, has still to be paid for really firstclass mortgage, while 7 or 7 '/> is asked for anything below the gilt-edged class. So far as the stock and share market is concerned, there do not appear to be any great bargains going a-begging.