N.S.W. LOAN

Greymouth Evening Star, 27 March 1926, Page 5

N.S.W. LOAN

COMMENTS ON FAILURE.

4 (Reuter.)

LONDON, March 25.

The “Morning Post’s” commercial editor comments on the New South Wales loan ;fs follows:—“For the third successive time New South Wales has failed to attract an adequate s response from investors here. Probably, as previously, the market eventually will absorb the stocks, but the result certainly is not conducive to the popularity of New South Wales issues. We do not think that the explanation lies merely in the precise terms of the issues. As a matter of fact, there is increasing concern here' regarding the rapidity of the growth of the N.S.W. per capita debt. Moreover, unlike New Zealand, the New South Wales loan prospectus gives extraordinary meagre information regarding the States’ finances. The “Daily Express” says: “Investors are getting a little shy of lending to Australia. If the borrowers had not the shelter of tlie Trustee Act, they would find it still more difficult to satisfy their requirements. There are many industrial debentures infinitely better secured.”

The “Daily Chronicle’’ says: “The eagerness, of investors for more generous terms must be largely attributed to the immense scale of the national expenditure, which gives no prospect of taxation relief, and thus keeps the net yield from high class stocks at relatively a low figure.” All the newspapers give prominence to the disappointing result. The financial writers say it escaped lighter than some expected. The discount doubtless will disappear, however, unless further Colonial issues are more attractive.

The “Financial Times” says: The request for more liberal information than the Common wealth and the States’ loan prospectus afford is reasonable and fair. New Zealand publishes particulars, and the Crown Colonies are equally frank, but N-.S.W. and several others do not attempt to give any information. Possibly they think it is infra dig, but no business man would dream of asking for money without detailed information.