THE NEW ZEALAND LOAN.

Press, Volume LX, Issue 11548, 2 April 1903, Page 5

THE NEW ZEALAND LOAN.

. -•— SMALL PUBLIC APPLICATION. SEMI-PANIC ON THE MARKET. (rao-t ourt owx coaiiKsroNDENi.) LONDON, February 20. Yesterday evening the time expired fertile receipt of applications for tlie New Zealand Loan of £1,250,000, the Heus being closed at four o'clock by the Bank of England. It then transpired that there was a cojnpiu a lively large number of flrrtall plications, but, so far as can bo judged, tins wholesale market kept aloof. Practically' tliere was a semi-panic among Australssiaa stocks, "the effecte extending to other classes, even to consols. Afl a result, only 8 per cent, of tlie total issue of the New Zealand Loan was applied for by the small, investing public already referred to. 'Hie loan was underwritten* o-t 94_, the under. writers taking the usual co_-_vh-sron only.

All things considered, the colony can be, said to liave got a good price. Uneler the heading, "The New Zealand Trouble," the City Editor of the "Daily Mail" saya: —"Whether Mr Seddon's cabled flare ww» intended to arouse *-_thur»asrjr. for the New Zealand issue or not cannot bo said. Anyhow, the attention drawn to the miserable state of aH-irs when tha scrip was offered nt 1 discount brought in a little support yesterday, of oourse of an interested nature, and tha -price was advanced to 5-8 discount. Perhaps the loan is good enough at tho rcduoed price, but the great point is thai, these *xdonae_ ar* showing a tendency to over-borrowing, and over-borrowing must be checked. The inclusion of their securities in the trti-teo list mast not be made an excuse for extravagance. Had this New Ze_~nd loon been a success, there, was a host cf other borrowers waiting. Tho re-buff wall do no hami, and the colonial autliorities are wise enough, doubtless, to take the ksson to heart.. If it, should make u_dmvr.tc__i hesitate, it will tend to check excessive borrowing." On Saturday last the following adv*__-ce_ notice of the impending New Zealand issue appeared in the .."Firj-tncial Times":—lt _•-. generally understood in Lombard Street that several of the AusA._la__an States are waiting round the corner for a favoiirafa-a opportunity to add to their in-_*bt~r.t_r-_», and now wo find New Zealand has o_etermined to test the market with a loan of £1,250,000 in Three per Cents., at a flxecl price of 94 r per cent. This is _ per oont. more than was asked for tho emission of £1,500,000 placed in November, 1901, when the colony was last raising funds. With regard to that issue, wo ren_rked at the time that the borrower 'received sc-m*_. what of a snub, as a result of its application to the market, for ... it Is generally accepted that, the underwiite-W have been left with about 45 per cent, of their guarantee on their lutnds.' We wonder what will happen on the present occasion. The existing Threes dropped % yesterday to 94J on the issue. It should he nott-el that the now stock will receive a full six montliN* interest on April Ist, although the final instalment is not duo until July 28th." It wa/j remarked by the ''Morning Leader" that:—"Mr Seddon'e speech as cabled over, failed to turn the tide in •____ unfavourable reception of the New Zealand Loan; the old Threes fell a point to 93_.," and the "Daily Mail" y<_*stci*day remarked: "See-ing that the New Zealand Loan fiasco would have checked borrowing, there* is notbing to complain about," —i.e., on th*_> Stock Exchange. "Truth" this week says:—'"The New Zealand Government has come into the market for £1.250,000 of Three per Cent, •stock/at 94_, after very loudly prc-claiming depeneien<*e of the Lo-edan ir_on*3y market. But that is not the e_pl____k«t of tho weakness. The fact is that twine articles on 'Is Australia Bankruptf in one of the halfpenny morning paper.* has caused » number of nervous neoplo to sell their stock.:. The odd thing ia that this particular paper, in its City columns, has fof months been _*cor_r_e_din*i the py**&*r** of

Colonials mora co__st«ntly thah any other Jouxiuil. Holdera of colonial .;tocl_. should not allow theii-sevca to bo frightened. The tessoTjroc-of Austra.ai.:a. are vast, and tlrough their financial methods -are tingetl with c_-*ja_vAgiU-CO onel a reckless worshippiinr oi t_e labour fetish, the Governmenta are quite equal to tho task of meet in jr th-ir "X_at the New Zealand I/oan h.ist not been token up well is shown by th- discount which exist*, on th. ctock. Inside support yesterday Ke.rved to re-duce it to ~ but tliere is i-ignificance in th if." -.ays the •Tall Mall Gazette." "The fact i-i that people in the United KLn_rdom have had rath-jr too many colonml loans in the la-a few ycais, and enped-nlly sine.'* ti/oir indi»ion in toe Trustee List. lYrhap- not m tew were jnrt off this i*ar'.icul:ir issue by Mr Seddon's boast that New Zealand waa independent of the London nir.n.y xu-rket. At any rate, the lebutl' is salutary. The imdenvnters wiii ba rather more chaiy."