THE RECENT LOAN

Evening Post, Volume CVII, Issue 48, 28 February 1929, Page 12

THE RECENT LOAN

LONDON EXPERT'S LETTER

The following letter, written under date 11th January, has been received by tho Prime Minister (tho Right Hon. Sir Joseph Ward) from a leading London financial authority:—

"Just a line to congratulate you on tho result of the New Zealand loan, -which was wonderful when compared with other countries, and is a great compliment to you personally. "A certain company created a great boom in the city, and large profits were made in England by those who had tho pluck to apply for the shares. I could have got in on the- best possible terms, as a friend of mine floated the shares and telephoned ino<in good time, but I could not see how the company could pay dividends on the inflated capital. However, quite a number of my friends made £10,000 each and invested it in the New Zealand loan. It is difficult at times to follow American finance, for they pay 8 and 10 per cent. for advances in New York and then buy millions worth of shares at high premiums. They get a lot of money in England through tho banks, as I understand the leading American banks will not advance more than 50 per .cent, against industrial shares. "The wool market is good, and likely to bo. Bradford cannot keep prices down in face of a keen demand from outsido. Dairy produce is also selling well, and you should have a real good 3oason in New Zealand."