THE BEST INVESTMENT.

Auckland Star, Volume XXXVII, Issue 33, 7 February 1906, Page 4

THE BEST INVESTMENT.

VIKWS OF A STOCK EXCHANGE EXPERT. (Bs TeJegraph.—Own Correepoadent.) . WEJLLINfiTON, this day. One of the oldest members of the Melbourne Stock Exchange, Mr. John McWhae. who is now en route for the Hot Lakes Wonderland has been giving his opinions to a ji New Zealand Times" reporter on the subject of buying debentures. Mr.. McWhae said that what has particularly struck him in New Zealand is the, to him, extraordinary fact that the who haye u a- little' money to spare—neglect the absolutely best security for their investments, viz., debentures-, and continue to allow in this wonderfully rich and prosperous country the soundest, securities idr invested capital to-go abroad. The people of New Zea.land hear of a Joan being, ritised somewhere on such and such terms, and tKe thought may strike them that someone has loaned the money, but what does not seem to be grasped isithe fact' tliaE those persons, however remote they may be, are ready enough to advance the money, knowing that jtia, absolutely the best se.curity. that can-be obtained, and, on tbje' broad ethics of investment, their 4 per ■cent;"-is better'than' , s'.per , cfent. "or 6 percent, that may be obtainable -on-first mortgages,, say, in Wellington. Tn the one case one ha-s a mortgage, tin a property the solid value of which cannot perhaps be accurately obtained. By taking up debentures pne has. a first mortgage on New Zealand. "Eleven years ago," says Mr. McWhae, "Melbourne was in the same state of ignorance regarding such investments as New Zealand is to-day, and the Stock Exchange had' just commenced operations. At the time the country wanted to raise £750,000. It could, not go to -London," Sβ it "Vfas shortly after" the big bank smash, so it was decided-to raise-the money locally, an act which proved the value of -a. Stock Exchange.; The debentures .were placed -on the market, and went off fairly well up to ! a certain- point, when there still remained paper to the extent of £280,000. The banks offered to talce the lot at 2 per cent, discount', but the exchange held a meeting, and the result was that Mr. McWhae was appointed a delegate to interview the Treasurer, Mi". Carter. He was informed thafc there still £280,000 worth of debentures unsold, andi to the Treasurer's gTeat surprise, told that official to book them to him on behalf of the members of the Stock Exchange., a step which.proved satisfactory to everyone concerned." — Mr. McWhae insists that the people of this colony only needed to be educated up to this form of investment to enable all the money- the country wants to be borrowed from within. At present the system had grown to such, an extent that the people wer.e a;ble to assimilate £3,000,----000 a'year. In Melbourne they had: just floated'a million, and a. half loan without any difficulty, and were now. deiling with 3 half million loan from New Zealand. They must have - it, the people wanted it; It was a complete mystery to. him why New Zeajanders did not take up their own debentures* the very cream of securities, for so fair he had not nret anyone whb 1 did not think the very-beet of this colony, The brokers in Now Zealand .would have to- take a.- lesson from Melbourne, and train the people to the knowledge of the ! investment that lay at their very door iln the case of trust moneys for widows ', and children, he did not think it was j right that such capital should be diverted J into any other channel but that whici i gave the best security, viz., State debenj tures.. New Zealand had magnificent sej entities, and did ■ not■-•- know anything I about them. "The popular idea about debentures,' j said Mr. McWhae, "is that you have t< ! wait twenty years or so for your money That is npt the experience in Melbourne where this form, of investment., bad be come...so popular that there is always a demand, and consequently there is seldon any difficulty in unloading " Referring editorially to the utterance? • of Mr. McWhae, the "Post" says ther« : is practically no open market for Govern ment debentures. It is here that Mr i McWhae's counsel is of value, and no of 1 fort has been made to encourage such i j market. It is in this direction that some thing could be done, and it is a matter foi I • arrangement between the several stoct ' j exchanges in the colony and the Govern ment. It would be a good thing for New Zealand if the financial requirements o 1 the State and the municipalities could b( met from within the colony f■' " 7 ) '" """■"~ I Furniture at the Fair—Every articl ! rjf furniture greatly reduced, during Fail . 1 —Smith and Caughey, Ltd.—(Ad.) , Sideboards at the Fair—Massive side - boards, with large. bcTellcd, mirrors? ari< , puriii panel*, clearing; afc £S Wβ. durraj