AN IMPORTANT TRANSACTION.

Evening Star, Issue 9701, 9 May 1895, Page 2

AN IMPORTANT TRANSACTION.

The following important report was read at to-day’s meeting of the Harbor Board :

Till-; ItOAUll’s DtCBKXTURKS

The Acting-chairman and Chairman of the Finance Committee reported as follows on the sale of £14,000 of the Board’s 5 per cent, consolidated debentures locally held in London by the Bank of New Zealand against advances to cish payment conversion account and 6 per cent, sinking fund loan purchase account: “ AVc have pleasure in reporting to the Board that, in accordance with the authority given them, the sale of £14,000 of the Board’s 5 per cent, consolidated bcbsnturcs has been effected locally In two lines at a price which yields a margin over the London prices on the Stock Exchange, and which must prove a profitable investment to the purchasers. The low prices to which those bonds have fallen in the London market is.quite inexplicable, and it is gratifying to find that local capitalists arc turning their attention to a class of securities which have been too long neglected. The price in the London market at present yields to the purchaser a rate of interest equal to 6 per cent., the bonds having thirtyfour years to run, the security being undoubted, as practically it is the security of the whole property of the people themselves. It may he as well to note that the, debentures sold are bonds that have been released under the conversion scheme, which has been gradually prog'cssing since 1886, and docs not increase the annual charge for interest, as the amount represents what has been paid otf of the 6 per cent, sinking fund bonds loan, 1874. AVe have to acknowledge the able assistance given ns by the manager of the Bank of New Zealand (Mr Micbie) in bringing to a successful issue t lie sale of their debentures. Details of the transactions are given in a separate memorandum. It may be as well to slate for the information of any parlies having capital to invest that the fullest parlicula is regarding l)m Board’s securities may be obtained from the manager of the Bank of New Zealand, or from the secretary and treaMiror of the Board.’’

The Cii.muvian said that the Hoard might well congratulate themselves on the success of this transaction, which showed that local investors had full faith in the future of this Hoard. A further saving would he effected by the inter..st being paid in Dunedin, thus saving exchange, etc. Ho could never understand why the Hoard’s stock was so much depreciated in London. Mr Mackkkuas, as chairman of the Finance Copimittee, said that the transaction was completed without any cost to the Board for oomrpist'ion-