COLONIAL SECURITIES IN LONDON.

Auckland Star, Volume XVIII, Issue 120, 23 May 1887, Page 4

COLONIAL SECURITIES IN LONDON.

I It is gratifying to read that New {Zealand 4 per cents, have gone lip 10s in the London market, and are now quoted at-^IOO ; but it would be wrong to conclude that there is anything especially complimentary to the credit of New Zealand in the fact, or that the financial policy of the present Government has had good effect at Home. " There may be some who I believe that the meeting of tbe Colonial j delegates in London, and the disse- | minatiOn of mora correct information r regarding the colonies, have .led to the

increased demand for Colonial seennties; but even that flattering delusion mast not be too closely nagged. Colonial securities, no doubt, now command a higher price than they have done lately but this rise Is coincident with an unprecedented advance in English Consols. The whole thing is, in fact, caused by the abundance and consequent cheapness of money offering for investment in London at present. It is simply a question of supply and demand, but, as we have said, it is so far gratifying to find that Colonial securities are not being neglected, but are commanding a fair share of the attention of the investing public. It is when we come to compare New Zealand securities with those of other colonies that the low ebb tide of our credit becomes apparent. Thus the other day New South Wales . per cents, were quoted at £110, while Victorian 4 percents. commanded £10710s. The Sydney papers admit that the declared intention of the New South Wales Government not to negotiate any fresh loan this year is the probable cause of the leading position occupied by their securities, and this shows in still stronger contrast the low estimation in which New Zealand securities are held, as New South Wales has successfully floated a loan since our last barely-floatable venture. These facts emphasise the necessity for this colony entering upon a policy of strict internal retrenchment and restricted borrowing for years to come. No doubt in the present condition of the London money market a loan could be most advantageously placed; but the colony will gain instead of lose by pursuing a selfdenying course. The mo3t gratifying feature of the monetary situation is the evidence afforded of the revival of prosperity and the inauguration of a period of confidence in place of the paralysing depression and distrust that have so long oppressed the world. The beneficent influence now felt at the world's financial centre will s&on be extended throughout exeiy part of the globe.