THE MILLION AND A HALF LOAN.

Evening Post, Volume XXIX, Issue 108, 30 May 1885, Page 2

THE MILLION AND A HALF LOAN.

? The present time wonld appear to be an exceptionally favourable one for floating the million and a half loan, and it is, we think, almost a pity that the North Island Trunk Railway loan of one million has not been offered at the same time. Money is evidently exceedingly plentiful jnst now, and consequently oheap. It is very doubtful whether a better opportunity for raising all the colony wants will ever ooour. When the last million was floated early in January last, the Bank of Kngland rate of discount was 5 per cent, and the market price 4 per cent., while Consols were 99}. Now the Bank rate is only 2 per cent., the market rate only i, and Consols are quoted at 10C). As the last loan averaged slightly over 99}, the present one should oertoinly command something very close to par. Dear as money was in January last, there were then 600 tenderers for tho one million loan, and .£3,985 000 was offered. The present loan is the first included in the financial proposals of the present Government. The hist one was the third million of the loan authorised three years ago, and it had nearly all beon anticipated or pledged when the present Ministry took office. They have, however, bo far carried on the business of the country without appealing to the English money market for funds. The purposes for which the million-and-a-half now asked for is required, nre defined in the Loan Act as follows: — Immigration, .£30,000; railways, £70,000; roads, bridges, and publio buildings, £620.000; telegraph extension, £30,000; gold fields roads and water-raoes, £40,000; lighthouses and harbour works, £40,000; oharges and expenses raising loans, £40,000. No donbt the greater part of the money has already been anticipated, or is required to meet liabilities entered into, but it is fortunate that the Colonial Treasurer has been able to bide his time, so as to seize the fayonrable opportunity whioh has now arisen. _____________^_