MEWS BY THE MAIL.

Thames Star, Volume IX, Issue 3026, 26 October 1878, Page 4

MEWS BY THE MAIL.

The following letters in the Times refer to the contemplated borrowings of the leading Australian colonies :—

" Sir,—As the telegrams from New South Wales and Victoria during the past month have announced the forthcoming of fresh loans, and as this has been the cause of something approaching to a panic in the market for these securities, I deem it only fair, in the interests of those important colonies and the holders of debentures in this country, to set the public mind right in tbe matter. In the case of New South Wales, she has not only been carrying on tbe construction of her railways for some years without bor-, rowing a farthing, but she has accumulated at this moment a balance in the hands of the various banks at Sydney amounting to about £4,000,000. She has doubtless taken power from her Legislature to borrow for the construction of her railways and public works, but it by no means follows that she will avail herself of this power: for some . time. With respect to Victoria, it should also be borne in mind that it is for the pur*, chase of the Hobson's Bay Railways and pther c reproductive, works that ; she contemplates''coming upon "this market. And when she comes I have reason to know that her borrowings will be spread over the next eight or nine years. It would be well that the investing public of this country should, bear constantly in mind that the borrowings of Australia are for reproductive works yielding from 4 to 5 per cent, net; that hot one farthing is wasted; and that, practically, their security is as good as if they held the debentures of Lancashire and Yorkshire counties or of the London and NorthWestern Railway.—An Axtstbaiian Colonist." >fi:"London, Sept. 10. " Sir,—As, a holder of £12,000 New South Wales Bonds I have read with satisfaction the letter of 'An Australian Colonist.' But I should be more satis* fied if your correspondent could explain why, if the Government of New South Wales have £4,000,000 now in the banks, they want to borrow £3,000,000 more; and further, whether such an enormous amount in the hands of the banks is a prudent or judicious mode of holding our funds ? Is it not an exaggeration of the policy of the Metropolitan Board of Works?—F.B." s i j j