COMMONWEALTH LOAN

Hawke's Bay Tribune, Volume XIX, Issue 30, 22 January 1929, Page 5

COMMONWEALTH LOAN

UNDERWRITERS RECEIVE 84 P.O

(Australian and N.Z. Press Association.) (United Press Association—By CableCopyright.) (Received 22, 10.10 a.m.) I London, Jan. 21. The underwriters receive 84 per cent, of the Commonwealth loan. A high financial official at Australia House, commenting on the loan, states that the amount left with the underwriters was not unexpected owing to the high issue price. The fact that dealings in the scrip closed at five-sixteenths discount after opening at five-eighths may be regarded as a tribute to Australia’s good standing on the London market.

“RESPONSE POOR; BUT NO' WORSE THAN WAS FEARED.” [Australian and N.Z. Press Association.) (Received 22. 1.10 p.m ) London, Jan. 21. The “Daily Telegraph’s” city editor states that the response to the Commonwealth loan was poor but no worse than was feared, though it is not flattering to the credit of the Commonwealth. “The time has surely arrived when its financial advisers should review the position Eighty-seven per cent, of the July stock and 84 ner cent, of the March stock .was left to the underwriters. This is not a reputation to cultivate. The reluctance of the city to take np stock at the time of issne needs investigation. Either the price is too high or else there is the impression—which certainly prevails —that Australia borrows too heavily and too regularly. It may be pointed out that as control is in the hands of a central authority «nd sinking fund arrangements exist, the contention may be unfounded but there is an element of doubt, to which attention should be paid. A rest from heavy borrowing would probably be the best remedy. In due course the stock would doubtless be absorbed.’’