NEW ZEALAND STOCK.

New Zealand Herald, Volume XIII, Issue 4460, 29 February 1876, Page 3

NEW ZEALAND STOCK.

Dcjring his recent visit to England, Sir Julius Vogel made arrangements with the Bank of England for placing New Zealand stock on the London market under such favourable conditions as caunot fail to have a very beneficial effect on Australian securities, for there can be little doubt that the arrangement will be made to apply to all the Colonies. The Bank of England has agreed to inscribe New Zealand stock, whether in the shape of fresh loan*, oriu the conversion of outstanding debentures into inscribed stock. The stock is to be placed on the same footing as Consols, or Metropolitan Bord of Works stoclc —that is to say, any person haying inscribed stock may at his pleasure rcceive certificate* payable to bearer instead of the stock, and these certificates can again at any time be changed into inscribed stock, The Bank, as already stated, is to couvert outstanding debentures which it is desired to convert, and in the case of new loans the Bauk is to receive the deposits and issue the scrip certificates till the future amount is paid up ; the Bank is to grant certificates to bearer to reinscribe when desired, and to pay interest half yearly or quarterly. The charge to be made by the bank is, we believe, to be at the rate per annum of £600 per million, or Is 2d per cent., for all the services enumerated. When the labour and responsibilites of inscription and of creating bonds to bearer are taken into account, the charge must be considered singularly low. This arrangement will give in effect the result so often desired, of substituting registered stock for debentures. For speculative sales, debentures are most convenient, but for permanent investment, and especially for the investment of trust funds, inscribed stock has in every way the advantage. The Imperial Government have consented to introduce a bill to authorise composition of the stamp duties on the same terms as those provided for the stock of the Metropolitan Board of Works, so that the stock will become transferable or exchangeable for certificates to bearer, and again exchangeable to inscribed stock without fee or charge. Although of course, Sir Julius has only acted for New Zealand, the Imperial Government are disposed to make the bill applicable to all the other colonies, and there is no doubt that the Bank, in agreeing to the terms, had it in consideration that the whole of the colonies would sooner or later place their loans on the same footing. Of course the agreement depends for effeot upon the New Zealand Legislature giving the necessary authority by legislation. Many of our readers are aware that for years past great exertions have been made to obtain the requisite authority to enable trustees to invest trust funds in Colonial securities, as they are permitted to do in Metropolitan. Board of Works stock, Indian securities, &c. The character Colonial loans will enjoy, when managed by the Bank of England, is likely to hasten the desired result of permitting their employment for the investment of trust funds.—Argus,