DEBENTURE CAPITAL.

Auckland Star, Volume LXIV, Issue 91, 19 April 1933, Page 4

DEBENTURE CAPITAL.

CHEAP RATE IN LONDON

The abundance of money available in London for industrial enterprises is illustrated by the fact that J. Lyons and Cc., caterers (whose capital already amounts to nine millions and a half)., are able to issue debentures at a rate of interest which, as recently as 18 months ago, would have seemed very low even for British Government securities (says the '"Melbourne Herald"). The new debenture issue is for £1,700,000, redeemable 1963-73, and the interest has been fixed at 4 per cent. Enthusiastic support is expected for it on the market. [Lyons and Co.'s existing capital includes two issues of 4% per cent debenture stock, one issue of 6 per cent third mortgage debentures, and four cumulative preference share issues at rates ranging from 5 to 8 per cent.l _ _ "Kaffirs" (South African mining shares), which lost some support after the boom of three months ago, are recovering their buoyancy in the market. Even such currnncy reformers as Sir Henry Strakosch now admit-that, in the popular imagination "gold is re-established-, even more firmly than it was before the depression as a safe refuge." " . Motor companies' shares are also having a boom on the strength of excellent statistics of rcc.ent output in motor manufacturing. ...... ~ Some shares, including the Singer, B.SA.. and Rover companies, have almost doubled in market value within a month. Commenting on the British revenue figures, "The Economist" says that as a. result of a repetition of the heroic efforts made bv the taxpayers in the 1931-32 financial year, the Exchequer will now be able to .pay its way, with a little over for debt reduction. If the English view of the December war debt payment as a capital payment be accepted, Britain will have succeeded in reducing its debt by 12 ;millions after meeting the whole cost of unemployment..