NEW ZEALAND LOAN.

Auckland Star, Volume XLIV, Issue 276, 19 November 1913, Page 9

NEW ZEALAND LOAN.

ONLY S PER CENT. SUBSCRIBED. (From Our Special Correspondent.) LONDON". October S. "How's the New Zealand issue gone?" was your London correspondent's "query to-day to ;he man in the city who advises him as to the disposition of his surplus thousands. •"I'nderKriters landed with 92 per cent.." was his curt reply. ;o which he presently added a laconic ""Scrip down to 7-S discount." T!:e iil--ucce.s=—it sounds had to talk of "failure" in connection with a New Zealand borrowing proposition—of this and other recent loans is quite easily accounted for. It is in a great measure due to the fact that of late the public has been suffering with new issues, and is suffering from acute financial indigestion. Moreover, investors, both large and small, are beginning to pick and choose. When trade is active more money is rerequired to finance the increased business, and those who are prepared to lend can make borrowe. t pay more for it. Thus lenders, who only a year ■would have been satisfied with a return of 4 per cent, on their investments. now stand out for 5 or even 6, even when the security is quite good. The public knows that it can obtain the higher rates, and it is determined to have. them. Moreover, instead of subscribing for new loans at their issue price, investors wait until the prices have fallen to a discount. Then, when the yield is greater, they condescend to relieve the underwriter;. The terms ■which hiprh-class borrowers are offering thp public are now in many cases dpiidedlv more attractive than they were even a few months ago. but it seems that still *better terms will have to be offered if the appetite of investors is to be successfully whetted. Bnt only S per cent, taken by the public of New Zealand 4 per cerit. loan of 3; millions! Even Canada, which has been a continual borrower for provincial and municipal purposes during the past few months, has never had such a smack in the face. Her last loan —a Government of Alberta 4i per cent.—was for a million, and the public subscribed 12 per cent.