NOTES FROM WELLINGTON.

Press, Volume LVI, Issue 17015, 11 December 1920, Page 7

NOTES FROM WELLINGTON.

('SI'ECTATj to "the press.") TV-EIALLXGTOX, 10. Inscribed etc;-!:, maturing in 1939, so'd to-day at £S9, yeildmg the investor approximator,- 5J p?r cent. Unless there aT« very strong holders of this clafs cf stock, .the , prices must go lower, because the loan nox before the public is changing- hands at r. very big discount. The six million loan carries interest at 5$ per cent., and. the Government has powf-r to comjj?l income' tax and land tax payers to subscribe to this if3u». Unfortunately, just now most join! stock companies and business houses want all tho money they oan raise to carry on during tho period of transition from a high level of prices to a much lower one. While there is no question as to the safety and merit of tho-security offered by the Government, there is the stern necessity of holding credit readily available. At all events, commercial houses enn just now nee their money ajid obtain a, better return. It thus happens that thosp who are affected by the compulsory clauses of the Finance Act are subscribing their quota, and, in eome instances, they axe selling out ao speedily a3 possible. A sale of this new stock was made yesterday at £86, or r discount of 14 per cent. 'If New 5% per cents, sell a,t £85, it is hardly probable tha-t the 4J per cent, wfll remain at £89, notwithstanding tha,t they mature earlier. Of course, the Government knows Bill about these transfers, and possibly something may i be done to stop them, for it is not to the j interest® of tho Stato that the stock should i soil at ii discount before the lists have closed. The Government has power to pur chose this stock up to £50,000 a year, jn ! order to maintain parity, and it is obvious fhat. unless there is a very great change in the financial situation, the whole of this mon*y will have to be expended.