LOANS TO AUSTRALIA.

Hawke's Bay Tribune, Volume XVI, Issue 86, 27 March 1926, Page 5

LOANS TO AUSTRALIA.

‘ INVESTORS A LITTLE SHY.” London, March 26. The “Daily Express” says: “Investors are getting a little shy at lending to Australia. If the 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 better 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 and thus keeps the net yield of high class stock at a relatively low figure.” All newspapers give prominence to the disappointing result of the New South Wales loan. Financial writers are offering a variety of explanations. TJio Financial News” says: “The request tor more liberal information than the Commonwealth and State 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 men would dream of asking for money without detailed information regarding security.” The “Morning Post’s” commercial editor comments: “For the third successive time New South Wales has failed to attract an adequate response from investors. Probably a.s previously, the market will “ eventually absorb the stocks, but the result is certainly not conducive to the popularity of New South Wales issues. I do not think 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 th© growth of the New South Wales per capita debt. Moreover, unlike New Zealand, the New South Wales prospectuses give extraordinarily meagre information regarding the State’s finances.”—(A. and N.Z.)