POOR RESPONSE

Northern Advocate, 23 January 1929, Page 5

POOR RESPONSE

COMMONWEALTH LOAN.

UNDERWRITERS’ BIG BURDEN.

{Australian Press Association.) (Received 12.30 p.m.) LONDON, January 21. The underwriters have taken 83 per cent of the Commonwealth loan.

The “ Daily Telegraph V * city editor says the response to the Commonwealth loan was poor, though no worse than was feared, but not flattering to the credit of the Dominion. The time has surely when financial advisers should review the position. Eighty-seven per cent of the July stock and 84 per cent of the March stock was .left to the. underwriters. This is not a reputation to cultivate. The reluctance of the city to take up stock on time issue 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. If may be pointed, out that as the control' is in the hands of the central authority and that as sinking fund arrangements exist, this eontentention may be unfounded, but there is an element of doubt to which attention should be paid, A rest from heavy borrowing is probably the best remedy and in due course'the stock will doubtless be absorbed.

TIME TO CALL HALT. (Australian Press Association.) (Received 1.40 p.m. LONDON, January 22. The “Daily Herald” says: “As anticipated, the Australian loan had a poor reception. It will take some time for the market to absorb the amount of paper. We hope that Australia will now give the gilt-edged market sufficient rest and make easier any possibility of Government conversions. ' ’