THE MONEY MARKET.

Auckland Star, Volume LIX, Issue 72, 26 March 1928, Page 4

THE MONEY MARKET.

AMERICAN BANKING

NEW YORK, March 23. The National City Bank announces that it will increase its capital stock from £15,000,000 to £18,000,000 by the issue of 15,000 new shares of a par value of £20 each. These will be sold to present stockholder* at £80 a ahare. Aa the shares of the bank are now selling on the open market at £168 each, it will mean the distribution of a large ium to present stockholders. Moreover, the bank, with ite combined capital and surplus ot £47.000,000, will far exceed in wealth any private banking institution in America.

WELLINGTON LOAN

Interviewed regarding the loan of £163,000 underwritten in London on Dehalf of the Wellington City Council, th Mayor (Mr. G. A. Troup) atated that h presumed from the cabled 10 that the flotation of the loan had bee» assured. If the loan had been undei written on the terms stated, namely, 5 pel cent at 98, then Wellington waa certainly to V>p congratulated, as the terms were practically on a par with recent New i Zealand Government loans and better than Australian Government loans,_ which surely was a triumph for anv municipality, and proof beyond any manner of doubt of the financial standing of the Wellington municipality on the London market. It was certainly a reply to recent financial critics, an unanswerable argument, beC # n "u « n " on financiers knew every detail i!?. finances of colonial municipalities. . '''kin* the interest at 5 per cent, said Mr. Troup, and the flotation at 08, the I total cost to- Wellington would be in the case of one part of the loan £3 3/ per cent, and in the case of the other loan £5 i 4/ per cent, including exchange and other costa.