SOUTH AUSTRALIAN LOAN.

Wairarapa Age, Volume XXXI, Issue 9154, 30 July 1908, Page 5

SOUTH AUSTRALIAN LOAN.

CABLE NEWS.

United Press Association—By Electric Telegraph Copyright,

MARKET DISORGANISED

Received July 29, 8.45 a.m. LONDON, July 28. The market for South Australian stocks i 3 disorganised. A bad impression has been caused by the resignation of Mr Jenkins, the South Australian Agent-General, and the fact transpiring tn-day that the Bank of Adelaide and Nivison's had entirely ignored and had no connection with the loan. The Stock Exchange and bankers condemn the sale of stock by a colony "on the othe- side," for subsequent issue or resale here, and say that if such a course were persisted in it would tend to destroy the market for' colonial stocks. Nivison's declined the Lloyd's Bank request to act as joint brokers for the issue.

A SURPRISE FOR THE CITY.

CHANGE IN METHOD OF BORROWING. Received July 29, 9.30 a.m. LONDON, July 28. The "Financial News" declares that South Australia's new loan ar rangement has greatly surprised tDe City. The Agent-General declines to make any statement at present. Australian bankers generally do not favour a change in the method of borrowing. Adherents of the old system calculated that if this loan were offered here on the basis of repayment in thirty years, at £99, the cost to the Government would be £3 14s per cent, per annum, thereby saving a half-crown per cent; compared with the new arrangement, which will b<2 equal to £75,000 on two millions for thirty years.

THE TREASURER REPLIES TO QUESTIONS.

Received July 29, S a.m. ADELAIDE, July 29. Mr A. Peake, the Treasurer, in replying to questions regarding the loan, said that last week the Government accepted what it thought to be a good offer with respect to the balance of the. three million loan, which will be falling due at the end of this year—that is, two millions, the sum of one million having already been arranged for. The Agent-General resented the Government having made arrangements for the loan without consulting him, and indicated that he thought f.he Government had made bad terms, and that he could have made better arrangements. The Government informed Mr Jenkins that the responsibility was with the Government, ard that all he was required to do was to facilitate the terms of the agreement which the Government had made through a local firm. The Government urged the Agent-General to note that the agreement must be signed within a certain time, so that the business might not bft jeopardised by delay, and the Government was therefore much vexed to receive a wire &t ating that as the agreement was not signed, and the terms had been made public, Lloyd's Bank had withdrawn from the loan. The Government regretted this much, and felt that a thorough investigation must be The Government maintained that it was a good financial bargain fotf the State, and regretted that it had been made abortive. Mr Peake added that an enquiry would be proceeded with in regard to the failure to have the necessary papers ready for signature. The Agent-General's resignation had not yet been accepted. >

A recent cablegram from Adelaide stated that "The Government has arranged with Lloyd's Bank, London, for the purchase outright 6f the two million loan required towards the redemption of she £3,095,000 four per cent, loan maturing in January next. The net realisation (interest plus charges and discount) will cost the Government about £3 16s 6d per cent, per annum, or a saving of about 13s 6d per cent."