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Taranaki Daily News, Volume LIV, Issue 320, 9 July 1912, Page 4

THE PROSPECTS FOR NEW LOANS. In view of the cold reception which new loans aro experiencing on •the London money market, some remarks in a recent issue of the Sydney Morning Herald are of great interest. It says:—"Our cables point out that recent issues on the London market have not been a success, that the underwriters received 75 per cent., and that all these issues are now at a ; discount. The New Zealand 3y a per cent, loan of four millions, at £99, though issued on such terms as to make the yield 4 per cent., was as great a ■ failure as the Indian 3% per cent. In each case the underwriters had to take up 87 per cent, of the issue. In the latter case the loan had a currency of 20 years, in the former of two years. Thus, the time factor did not operate. There seems to be something more than a mere disinclination to take such stock, and a key to the situation is perhaps that afforded by recent compilations of capital subscriptions by the Statist. According to that weekly, the capital subscribed on the London market in April was £15,000,000, or £7,000,000 below April of 1910. Though the decrease in the first four months of the year is not so glaring, still it is sufficiently noticeable. In 1912 the amount was £74,409,205, in 1911 £85,298,172, and in 1910 £110,452,381, a decrease of £11,000,000 in one case, and of £30,000,000 in the other. Of course it has to be remembered that the coal strike occurred in March and April of this year, and the diminution of capital offering is calculated to be about that lost through the strike, but the decrease, according to the latter figure quoted by the cables, has continued. The prospects ahead of needy Treasurers are not bright, and should the Commonwealth win over any considerable quantity of savings banks deposits the prospects will be dreary."