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SOUTH ADSTBALIAN LOAN

[PXB FKKBS ASSOCIATION.] London, February 7. Interviews have taken place between brokers and bankers relative to floating the remainder of the South Australian loan. The former made some stroog remarks about the audacity of the colony m attempting to emulate Victoria, and the incautious conduct of Mr Play ford, Premier and Treasurer, m overriding the advice of the loan agent and bankers. It was parsimony on tbe part of South Australia to endeavor to borrow too cheaply, and they pointed out that the Bank of New South Wales •ecures the guarantee of the Bank of England when a loan is to be floated for that colony, which makes failure Impossible. South Australian stocks -are unpopular, and it is necessary, the .brokers contended, that they should fee allowed a margin of i per cent to secure their co-operation. It is understood the colony's banker will subscribe sbe balance of the loan, and unload if gradually. It is intended that the present tenderers shall receive allotments m full. The "Times" states the failure of the So-rth Australian loan was foreseen by expert^ and that it was due to overconfidence io relying on the existing demand for colonial stocks. The "Times" adds— Colonial Governments evidently think they can now dispense with the assistance of syndicates, forgetful of the fact that the latter have frequently averted financial fiascos. The brokers have offered to subscribe the balance of the South Australian loan at about 98. One hundred and forty-three thousand pounds' worth •was taken up to-day at par. fit (Received February 9, 12.7 p.m.) London, February 8^ The operations of the financiers m connection with the Adelaide loan have, it is believed, ruined the prossects of trustees investing trust funds m colonial stock.

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https://paperspast.natlib.govt.nz/newspapers/AG18890209.2.14

Bibliographic details

SOUTH ADSTBALIAN LOAN, Ashburton Guardian, Volume VII, Issue 2059, 9 February 1889

Word Count
291

SOUTH ADSTBALIAN LOAN Ashburton Guardian, Volume VII, Issue 2059, 9 February 1889

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