COLONIAL LOANS IN LONDON.

New Zealand Mail, Issue 998, 17 April 1891, Page 30

COLONIAL LOANS IN LONDON.

PAPER BY SIR J. BADENPOWELL. THE VICTORIAN LOAN. (PER PRESS ASSOCIATION.) Sir G. Baden-Powell, in a paper on the Bill providing for tlie investment of trust funds in colonial stocks says there are many signs that Colonies which are proceeding with utterly unremunerative works must accept a much lower price for their loans, many of which might be raised in the Colonies, as they are in great need of local stocks. Sir Graham Berry, Agent-General of Victoria, has written to the newspapers denying the rumours that the banks have underwritten any portion of the Victorian loan. The irritation of the brokers who had solicited the interview with Sir Graham Berry on the subject is much modified at the latter’s announcement. London, April 9. Syndicates will probably only tender for small amounts, fearing another loan will be pub on the market shortly by Victoria. The Victorian loan is quoted from J to § per cent premium. London, April 11. The prospects. of the successful floating of the Victorian loan are dubious. Public enquiry is small, but a section of subscribers to the earlier loans evince a disposition to make an average investment at a nominal premium of £ per cent. If the banks give some support to the loan it will probably just be subscribed. Chief Justice Higginbotham, of Victoria, in an article on “ Greater Britain,” declares Australia has already attracted more attention in the matter of loans and private investments of capital than is consistent with the permanent welfare of tho colonies. London, April 13. Tenders fßr the Victorian loan of L 3,000,000 were opened to-day, when it was found that only L 1,970,000 had been subscribed. One tender was added in order to make up L 2,000,000, and the balance was withdrawn. It is believed that neither tho syndicates nor the hanks tendered. The average price of the Victorian loan is L 97 11s 4d. Later. The highest tender for the Victorian loan was LIOO 0s 6d. Financiers consider the failure of the loan is tho result of the depressed state of the money market and over-borrowing, and declare that it would be fruitless for any of the Australian colonies to re-attempt to place another loan on the London market within the next twelve months. Three hundred and fifty-two tenders were reoeived for the Victorian loan'. The largest was sent in by a life insurance company for L 145,000, at a shilling premium. The London and Westminster Bank took L 300,000 at the minimum. The failure of the loan is attributed to

the abstention of the associated banks and syndicates through fear of an increase in the bank rate, and an additional withdrawal of gold. The general opinion in the City is that the rebuff will prove a valuable lesson, and show Victoria that she must put a check on borrowing. Many people express surprise that so much was subscribed.