MORE BORROWING.

Waikato Times, Volume XXXVIII, Issue 3112, 25 June 1892, Page 2

MORE BORROWING.

(l)T ELKCTBIC TELEGRAPH,—COr\RIGHT. London, June 22. It is announced that tenders for a Vi'ilorian 31 per .cent, loan of £'-',000,000, with a minimum of 92, will be opened on the 29tli instant. Money is very plentiful, and there is an official impression that the Victorian loan will be subscribed at a premium. One of the leading bankers expects that it will average £94. The brokers, however, doubt its being successfully floated, and 6tate the public are not likely to subscribe largely. ■ Later. It is understood that the Melbourne Banks have wired to London to support the Victorian loan to the utmost. Victorian stocks have fallen in consequence of tho announcement of the new loan. Holders and bankers are indignant at the issue of the loan 4 percent below the price of existing stocks, especially after the Government had allowed it to bo implied that Treasury Bills would meet the wants for the year, and Sir G-. Berry stated that he expected stocks would reach par. Mr Dibbs is amazed at the unexpected action of the Victorian Government. He considers it will depreciate the credit of the colony to accept 92, and will injure the other colonies by compelling them to accept equally low figures. He points out that tho lowness of the minimum will give a good handle to squeeze Australia by admitting their securities are not of tho best. The Times considers the issue of the loan inopportune, and states it has caused surprise since it was generally supposed the advisers of the colonies were away from the city financiers, who, it believes, will not be disposed to look favourably upon further borrowing, especially after they had been given to understand that all reasonable needs would be met by the Treasury Bills that had been issued. The litter would have been favourably received.

Colonial stocks have fallen in sympathy with Victoria. The Standard says the stock jobbers term the issue of a Victorian loan " a breach of faith," and are disgusted at the action of the Government. The loan is at a premium of 1 per cent. All colonial stocks are very flat, and there is no business doing. The Stock Exchange is greatly incensed at the Victorian loan. The Times says they have not heard much of Mr Dibbs' scheme for rehabitulating the Australian colonies, but nobody seriously believes Australia is incapable of meeting her liabilities. No doubt there has been extravagant borrowing, and a good deal of corruption in more than one of the colonies, but these are mistakes that eta easily be corrected.