ADDITIONAL SHARE ISSUE.

Timaru Herald, Volume XCVIII, 14 May 1925, Page 5

ADDITIONAL SHARE ISSUE.

MERCANTILE FINANCE CORPORATION (CHRISTCHURCH.)

OF INTEREST TO ALL INVESTORS

Of particular interest to all investors is the additional issue of shares, at par, for subscribers in South Canterbury, North Otago, and Vv estlanu, by the Mercantile Finance Corporation, Limited (Christchurch). This step was decided upon by the directors of the Corporation as a result of the denyind for the Corporation’s funds.

It should be noted that the principal operations of tho Corporation, winch functions purely as a banking institution, are the liquidating of short-term commercial securities, an exceptionally safe form of finance that provides three separate recourses to each transaction. Writing on this class of business, “The Weekly Trade Report” (the official organ of the Merchants and Traders’ Association, Australia), says :

“An investment based on undeniable security . . . ottering to shareholders all the elements of safety with a high profit on investments. The question of risk can be safely ruled out. There could not be a better investment for tho person with limited means or for a capitalist on the lookout for a sound proposition.”

In connection with tho class of business transacted by the Corporation, it is estimated that in Christchurch alone, merchants lyive over £200,000 tied up in short-term securities. The remarks of Mr Elder, the Australian Trade Commissioner in the United States, are also informative, in that they show the trend of business in which tho Corporation is interested. He states that:—

“There are 17,000,000 motor cars in the United States, of which about 75 per cent, are purchased on time payment. . There arc also about 4,000,000 radio sets, the greater number of which have been bought on time payment.” It is not at present expected that the additional shares will- be called to more than 7s 6d. Applications must be made to the local brokers, G. D. Virtue and Co., Tim,aril, or to anv member of tho Christchurch Stock Exchange. Organising brokers for the Corporation are Stewart, Beckett and Co., 152 Hereford Street Christchurch. ...