THE VICTORIAN LOAN.

Press, Volume XLVI, Issue 7264, 25 January 1889, Page 5

THE VICTORIAN LOAN.

[per press association.] Received January 24th, 2 p.inLondon, January 22. MrWestgarth states that the manager of the London and Westminster Bank is disappointed that the Victorian loan did not bring the highest price jet recorded. The reports, however, received by the mail yesterday revealed the unexpected acutenesa of the financial reaction in Victoria, and private letters announced several failures were impending. Thenewa unsettled smaller investors who were depending on an advance. Brokers and bankers admit the principal cause of the loan net realising the amount expected was a tacit conspiracy among brokers to depreciate the loan, because they were alarmed least a high premium should deprive them of a margin for reselling the stock. The brokers are jubilant at the result of their tactics, and expect to unload the loan at a premium of 1 per cent. It is generally conceded that so low a minimum as par was unwise, and that 102 would have been preferable, and given the loan a stimulus. Mr Westgarth again states his belief that a 3 per cent, loan would have been better, as the brokers dislike stock on which they have to pay a premium, finding it difficult to get rid of it at a profit. The livelier the speculation the better it is for the colony. The Standard confirms the bearing of the loan by brokers. It gays, however, the average price is dear enough in all conscience, though the last New South Wales loan was a little dearer to the successful tenderers. Ifc is expected colonial stock will rise, since the suefcess of one colony is beneficial to the others.