COLONIAL LOANS IN LONDON.

Timaru Herald, Volume CXXIII, 27 March 1926, Page 9

COLONIAL LOANS IN LONDON.

Latest Issue At Discount,

SIGNIFICANT REQUEST TO CHANCELLOR.

Bv Cable—Press Association —Copyright. Reuter’s Telegrams. (Received .March 20, 0,5 p.m.) LONDON, March 25. The New South Vales loan of £4,0(10.000 opened at J per cent, discount. .11 was announced yesterday that ,0 'per cent, of the loan Told been Jolt in the hands of the underwriters.

HINT TO COLONIAL BORROWERS

FULLER STATEMENTS DESIRABLE. Bv Cable —Press Association —Copyright. Australian and N.Z. Cable Association (.Received March 20, 0.0 p.m.) LONDON, March 25. In the House of Commons, replying to a question, 3!r Churchill (I haneellor of the Exchequer) said he thought he had no power to insist on borrowers under the Colonial Stocks .Vet, publishing detailed iiilorniaiien with regard to their budgetary position, but lie would certainly welcome an extension of the practice already adopted in many eases ol giving Midi information.

DRASTIC RESTRICTIONS DEMANDED.

PLEA FOR GOVERNMENT ACTION. By Cable—Press Association —Copyright. Sydney “ Sun ’’ Service. (Received March 26, 5.5 p.m.) LONDON, March 25. 'The drastic restriction of fresh trustees’ stocks, including overseas borrowing, was suggested by Mr Stanley Ma chin,-presiding at a meeting of the Associated Chambers of Commerce. He declared that the Government's first duty was to reduce taxation, and pointed out that £20,900.60(1 could lie saved by ihe conversion of £2,000,000,000 of 5 per cent, war loan into 4 per cents. The Government has the right, alter 1923, to repay or convert, but. this was impossible while - the 3.} war loan was below £9O. 'The latter was prevent.>d from rising because of the flood of new issues.

Dealing with overseas loans,- Air 3-Inchin declared that the public were constantly told that overseas borrowing would mean the export of Brilidi goods. 'This was miiy partially true, as it did not apply to the renewal of loans raised to pay interest on 11 1 0 existing debt. Such issues eompele with the British Government stocks and hinder the reduction of the income tax. THIRD SUCCESSIVE FAILURE. COMMENT RY FINANCIAL EXPERTS. By Cable—Press Association—Copyright. Ain'tr».;no ami N.Z. Uab!« AJuoe.nriou (Received March 20, 7.20 p.m.) LONDON, March 25. ' “The Morning'Post’s” commercial editor comments that for the third successive time, New South IVales failed to attract an adequate response from investors. Probably, as previously, the market will eventually absorb the stocks, hut the result has certainly not been conducive o the popularity of New South Vales issues. “3Ve do not think the explanation lies merely in the precise terms of the issues,'l adds the commercial editor. “As a matter ot fact, there is increasing concern here regarding ‘lie rapidity of the growth o£ New South Vales per capita debt. Moreover unlike New Zealand's prospectus, the New South Wiles prospectus lives extraordinary meagre information regarding the Stale’s finances." “The Daily Express” says that investors are getting a little shy ol lend,’ng to Australia. If borrowers had not the shelter of the Trustee Act they "would find it still more difficult to satisfy their requirements. There are many industrial debentures infinitely better secured. “The Daily Chronicle” says the eagerness of investors for more generous terms, must be largely attributed to tlie immense scale of national expenditure, which gives no prospect of taxation relief, and thus keens the net yield of high-class stocks at a relatively low figure. All the newspapers give prominence to tlie disappointing result. The financial writers say the underwriters escaped lighter than some expected. Tlie discount will doubtless disappear unless further colonial issues are-more attractive.

‘‘Tlie Financial Times” says that the request for more liberal information than the Commoinvealtli and States prospectuses afford is reasonable and fair. New Zealand publishes particulars and the Crown Colonies are equally frank, but New Booth AYTiles and several others do not attempt to give any information. Possibly they think it infra dig, but

no business man would dream of asking for money without giving detailed information regarding seen rity.