IMPROVING CREDIT.

Taranaki Daily News, Volume LVI, Issue 11, 13 June 1913, Page 4

IMPROVING CREDIT.

Money is hard to get in London just now, as a good many of the colonics "(New Zealand among them) are finding out to tlicir cost. Speaking iir Wellington the other day Mr. Allen had the following to ; say affecting New Zealand's position on the London market: -r"I have no hesitation in saving that New Zealand stands as high in estimation in London as any other Dominion, and I believe higher. The yroof is that When we lloated the three-niiliion loan, a'l though we struck the three worst days of.all the days when I was m London, there were 1072 applicants 'or the loan. It is true that the underwriters were left with SO per cent .of it, hut jt is also true that they unloaded every halfpenny of it within two months. ' P.cfore .lie left London, lie" continued, lie' was glad to know that the opinion of the solid investor concerning New Zealand stocks was so good as to enable the underwriters to clear their holdings and to make a handsome profit. He lisul as a result been able to place another £350,000, and at greatly increasing rates, The three-million loan was floated at £OB, and there were various expenses for underwriting, commission to the Hank of England, and stamp duty. Of the last instalment £250,000 was raised at £0!) f»s. and this was free of all excuses except brokerage and stamp duty. It was not a short-dated loan either; it wis for 30 years or f>o years. _ Then they m.hl lloated the last iIOO,OOO without any underwriting. with just the same expenses as the preceding section, and it had realised not £!)9 os, liut £IOO 10s. If Hie people of this country would live more or less simply, and not extravagantly, the day would, he believed, soon come when they could get back to 3'/ 2 and 3 per cent, loans and ruise them on better terms than previously. Our name stood high, and it rested with ourselves whether we continued to occupy that nigh position or allowed it to deteriorate. He believed the people of New Zealand would not allow our name to deteriorate on the London market, where we must go for our loans. There were large loans coming due next year. One of the (\i!s of the short-dated debenture system was that the stock in these two or chree-ycar loans did not get into the hands of real investors. It was held by people, some of whom were underwriters, who insisted upon having it repaid. They were anxious to get the legitimate pickings they were entitled to get, and they required that the loans should be repaid and others floated in order that they might get more fees. He bad been sent Home to convert these loans, and he had been Hnsible to do it because of the conditions under which they were held, but he had nevertheless made provision for meeting these loans, and he hoped we would meet them under better conditions.