INVESTORS EAGER

Manawatu Times, Volume XLIX, Issue 2339, 8 January 1926, Page 7

INVESTORS EAGER

BIG FOREIGN ISSUES SNAPPED UP. “PACE MUST NOT BE MADE TOO FAST." [By Electric Cable —Copyright.] [Aust. and N.Z. Cable Association.] (Received Thursday 8.55 p.m.)

, LONDON January 7. Two large foreign loans have been snapped up most eargerly. One of a million sterling issued by the Hungarian Land Mortgage Institute in 7J per cent bonds, issued at ninety.three was yesterday over-subscribed within an hour. To-day the list for four millions worth of 75 per cent San Paulo coffee issued at ninetyfour closed in a few minutes, after scenes resembling a football scrummage. Several other largo foreign flotations are imminent. The “Financial News” says that now the embargo has ceased, It is naturally expected that business during 1926 will return to its normal volume of 1924, when it was £40,619,000. Overlending would Immediately be reflected by the weakening 'of the sterling exchange necessitating the stiffening of the bank rate as a counter-check, wherefore the pace cannot be made too fast, whether the offerings be on Dominion or foreign account and the margin available for overseas investment cannot be too far anticipated without the risk of the underwriters being left with big blocks at heavy cost to the borrowers.

The “Financial Times" says In the gilt-edged 'market the monetary position is still the cause of uneasiness. The prospect of heavy colonial and foreign borrowing in the early future Is regarded with misgiving.