COMMONWEALTH LONDON LOAN UNDERSUBSCRIBED

Manawatu Times, Volume LIII, Issue 6665, 19 July 1928, Page 6

COMMONWEALTH LONDON LOAN UNDERSUBSCRIBED

UNDERWRITERS TO SHOULDER. Australian Press Association, LONDON, July 17. Tho Daily Express states that the Commonwealth loan has been considerably : undorscribed. Tho poor subscription to tho loan, or which the underwriters wore left witn--87 per cent., is attributed to the general dullness of tho Stock Exchange, and to fears that the Now York money rates aro going higher; also to the fact that largo blocks of the last New York Australian loan aro being offered hero at 87 per cent. Tho Commonwealth loan above referred to is for £7,000,000 bearing interest - at,.-5 per cent., issued at £9B per cent., and •maturing 1945-75. The final instalment of 5Cf per cent, is payable September 14 next, and the .first interest payment 'of 35/- is due June 1, 1929. Tho slump in the New York investment market resulted in big parcels of Australian Commonwealth dollar loan stock beings sent to London for realisation.' The loan was issued in New York at ;92i poi* cent., and, according to the above cablegram was ,being offered in London at 87 per cent., a very substantial discount; on securities of this 'nature, and calculated to make difficult tho-passei*o of.stock of tho latest Commonwealth £7,000,00C{ from underwriters to tho investing public.