COLONIAL BORROW

New Zealand Herald, Volume XXXII, Issue 9808, 1 May 1895, Page 5

COLONIAL BORROW

THE NEW ZEALAND LOAN.

A FAVOURABLE CRITICISM.

INTENTIONS OP VICTORIA AND

NEW SOUTH WALES.

Press Association.—Electric Telegraph.—Copyright

Sydney, April 30. The Daily Telegraph says thab New Zealand, in making' her loan venture, has one distinct advantage over her Australian neighbours, as neither syndicates nor dealers hold any of her existing loans, all having gone into the hands of bona fiida steady investor?. Both New Zealand and South Australia, it considers, have shown by the best of all evidence that they can shape their finances so as to resist the temptation to borrow in England, and' therefore ib is natural thab their securities should stand relatively high in London. New Zealand, it adds, is now, in the face of many drawbacks, reaping her reward, and the paper wonders how much of the Advances to Settlers loan will find its way into the bank—possibly a considerable amount; and last year's strained condition of some of her local institutions will thereby be more widely relieved. The Telegraph considers that if New Zealand can borrow at 3£ pet cent, nefcb, and lend ab 5 per cent., there will be a safer margin upon which to conduct her agricultural business than the one per cent, margin originally proposed. The Premier states that the Government have no present intention of raising a loan, even under the present very opportune conditions. Tho action of New Zealand in raising a 3 per cont. loan is regarded by him simply as the outcome of the extra, ordinarily favourable state of the market. A year or two ago, he says, such a proposal would have invited certain failure, and its success is an evidence of the favour in which Australian securities are regarded in England.

Melbourne, April 30. The Premier denies the rumoured intention of Victoria to place a loan on the market, and that there is ample money in hand to meet all present requirements, and, if funds are needod, the Government will raise the money locally.

London, April 29. The New Zealand loan ii quoted at i\ premium, and the Western Australian a/. 33 promium.