VICTORIAN LOAN,
A FAILURE. (iIY ELKLTBIC TKI.KIiKAI'II — COI'VHKJHT ) Loxnox, April 13. Tkndkiis for the Victorian threemillion lowi were opened to-day, whnn it was found that ouly £1,070,000 had been subscribed. One tender was added in order to makeup £2,000,000, and the balance was withdrawn. It is believed that neither syndicates nor banks tendered. Later. Throe hundred and fifty-two tenders were received for the Victorian loan. The largest was sent in by a life insurance company, for £145.600 at a shilling premium. The London and Westminster Bank took £300,000 at the minimum. The failure of the loan is attributed to the abstention of the associated banks and syndicates, through fear of an increase in bank rates, and the additional witlidiawi'l of gold. The general opinion in the city is that the rebuff will prove a valuablelesson, and show Victoria sho must put a. check on borrowing. Many people express surprise that so much Was suseribed. The average price of the loan is £97 Vis. Id. The highest tender was £1(10 os. Gd. Financiers consider the failure of tin! loan is the result of the depressed state of the money market and overborrowing, and declare that it would be fruitless for any of the Australian colonies to attempt to place; smother loan in the London market within the next twelve months. April M. Victorian scrip is quoted at par. The Times, referring to the failure of the Victorian loan, considers that tin- colonies have bei-u allowed to borrow too cheaply, and that most of their most sanguine friends must now see that-the time has arrived for them at least to moderate their demands. The Standard states that the rebuff will prove a useful lesson to Victoria, which, like her neighbours, has t rusted to extravagant borrowing through the syndicate system. It adds ihat the subscription list, though nut providing sufficient money to cover the loan, is a healthy one.
The' Diiily 'JMcirraph lliinlts the ininimuiu was fixed :it too high a price, find that, the rute of interest ought to l>e iihont -I ]ii'i- uent.
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Waikato Times, Volume XXXVI, Issue 2926, 16 April 1891, Page 2
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343VICTORIAN LOAN, Waikato Times, Volume XXXVI, Issue 2926, 16 April 1891, Page 2
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