MONETARY AND COMMMERCIAL.

Lyttelton Times, Volume LXXVII, Issue 9761, 25 June 1892, Page 5

MONETARY AND COMMMERCIAL.

THE VICTORIAN LOAN. EMPIRE TRADE LEAGUE. [Special to Press Association,] LONDON, Juke 22. It is understood that the Melbourne Banks havo wired to their London offices to support the Victorian stocks, which have fallen, in consequence of the announcement of the new loan. Holders and bankers are indignant at the issue of the loan at four per cent below the price of existing stocks, especially after the Government had allowed it to be implied that Treasury bills would meet all wants for the year, and Sir. G. Berry had stated that he expected that stocks would shortly reach par. Mr Dibbs is amazed at the unexpected action of the Victorian Government, and considers it will depreciate the credit of the Colony to accept 92, and will injure the other Colonies by compelling them to accept a similarly low figure. He points out that the lowness of the minimum will give a good handle to the enemies of Australia, by admitting that their securities-are not of the best, June 23. The Times considers the issue of the Victorian loan inopportune, and states that it has caused some surprise, since it was generally supposed that the advisers of the Colony were away from the city at present. Financiers, it believes, will not be disposed to look favourably upon further borrowing, especially after they had been given to understand that all reasonable needs would be met by the Treasury Bills that had been issued. The latter would not have been favourably received had it been supposed that a loan was contemplated. This is a fresh proof that it would be very unwise to allow colonial securities to be made-available as investments for trustees. All other colonial stocks havo fallen, in sympathy with Victorian. The Standard says that the stock jobbers term the issue of the Victorian loan a breach of faith, and are disgusted at the action of the Government. The loan is at a premium of 1 per cent. Crosse and Blackwell’s business has been formed into a Company with a capital of .£570,000. Mr Stewart, who was appointed temporary liquidator for the Mercantile Bank, presiding at a meeting of the shareholders, complained that the Australian managers had appeared to regard the London Directors simply as a conduit pipe to convey the money of English depositors ; and made it absolutely necessary to have the Australian affairs of the Bank thoroughly investigated. He desired to keep secure fer English creditors the assets in England, which amounted to about five shillings in the pound of tho whole capital, and also to obtain a prompt realisation of the assets in Australia. Mr Stewart was given instructions, by tho meeting, not to make a call until it was decided who were the proper persons to receive the money ; and a Committee, of four shareholders and five depositors, was appointed to assist the liquidation. It was also decided to apply for a compulsory winding-up order on Saturday. All Colonial stocks are very flat, and no business whatever is doing. Stocks are very flat still. The Stock Exchange is greatly incensed at the Victorian loan. Tho Times says they have not heard of Mr Dibbs’ scheme for rehabilitating the Australian Colonies, but nobody seriously believes Australia to be incapable of meeting her liabilities. No doubt there have been extravagant borrowing and a good deal of corruption in more than one Colony, but these are mistakes that can bo easily corrected. A cargo of Adelaide wheat sold at 345, and of Victorian at 34s 3d. [Received June 24, at 7 p.m.] June 23. At the wool sales to-day the bidding was spirited. Faulty sorts show a slight improvement, and good wools have an upward tendency. American competition is keen, but the Bradford market continues dull. Tops are rather weaker. Manufacturers decline to operate except at a reduction, as they have no confidence in present values. [Received June 24, at 8.30 p.m.] Addressing a meeting of the Empire Trade League to-day, Mr J. Munro, Agent-General for Victoria, stated that a scheme for the exchange of products on a preferential basis would be materially beneficial to England and the Colonies, while a federation of the Empire would command peace in the world.

Mr Dibbs, the Premier of New South Wales, endorsed the speech delivered by the Marquis of Salisbury at Hastings in May last, in which he urged that England ought to be prepared to retaliate on hostile tariffs, but without excluding raw materials or food. Mr Dibbs regarded Imperial Federation as unnecessary, as Australia was already part of the Empire, and there was no stronger tie than that of commerce. He advocated a commercial trade bond, England having the preference in the Colonial markets as against foreigners; but the Colonies, he argued, must retain their rights and legislative independence. He admitted that the snbsidy paid by the German Government to the German line of steamers running to Australia virtually enabled German goods to be landed in Sydney free of charge, but the Colonists much preferred English goods. Mr Dibbs supported the resolution moved by Sir Charles Tapper, High Commissioner for Canada, and seconded by Mr Howard Vincent, M.P., urging the extension of interBritish trade as productive of the resources of the Empire, which are sufficient to supply the Empire without the aid of foreign markets. The motion was carried.