RESULTS DISAPPOINTING.

Hawera Star, Volume XLV, 27 March 1926, Page 5

RESULTS DISAPPOINTING.

LATEST N.S.W. LOAN. NEWSPAPER COMMENTS. BY CABLE—PRESS ASSOCIATION-COPYRIGHT. LONDON, March 25. . All the newspapers give prominence to the disappointing result of the New South Wales Joan, and the financial writers are offering a variety of explanations. The Daily Express says that investors are getting a little shy of lending to Australia. If borrowers had not the shelter of the Trustee Act they would find it still more difficult to satisfy their requirements. There are many industrial debentures infinitely bettfer secured. The Daily Chronicle says the eagerness of investors for more, generous terms must be largely attributed to the immense scale of national expenditure, which gives no prospect of taxation relief. This keeps the net yield of high-class stocks at a relatively low figure. The Financial News says that the underwriters escaped more lightly than some expected. The discount would doubtless disappear unless further colonial issues were made more attractive.

The Financial Times says the request for more liberal information than Commonwealth and States’ prospectuses afford is reasonable and fair. New Zealand publishes particulars, and the Crown Colonies are equally frank, but New South Wales and several others do not attempt to give any information. Possibly they think it * infra dig, but no business man would dream of asking for money without giving detailed l information regarding the security offered. The Morning Post’s commercial editor comments that for the third successive time New South Wales has failed to attract an adequate response from investors. Probably, as was previously the case, the market will eventually absorb the stocks, but the result is certainly not conductive to the popularity of New South Wales issues. He does not think the explanation lies in merely the precise terms of the issues. As a matter of fact there is increasing concern here regarding the rapidity of the growth of the New South Wales per capita debt Moreover, unlike those of New Zealand, New South Wales prospectuses give extraordinarily meagre information regarding the finances of the State.