THE VICTORIAN LOAN.

Otago Daily Times, Issue 8395, 19 January 1889, Page 2

THE VICTORIAN LOAN.

[By Electric Telegraph.—Copyright.]

(Special to Press Association.)

London, January 17, (Received January'l9, at 10 p.m.)

The results of interviews with prominent financial men and some of the Agentsgeneral with reference to the prospects of the Victorian loan have been published. Sir Graham Berry expressed himself as assured of the success of the loan, and that its success would have a healthy effect on colonial stocks. Sir Arthur Blyth, the Agent-general for South Australia, expressed surprise that Victoria had not seized upon the suggestion of Mr Westgarth, tho well-known iinancinl authority, and offered the loan at 3 per cent. Had Victoria done this it would have been the first time in the history of loans that such a reform was adopted, and it would have had a dramatic effect on colonial stocks, and such action on the part of Victoria would have reflected great benefit on her neighbours. Upon being asked, in view of this expression of opinion, if he would be prepared to advise his Government to act on Mr Wcstgarth's suggestion when a South Australian loan was placed on the market in April next, Sir Arthur Blyth said ho could not so advise his Government, as the present quotations of South Australian stocks would not justify him in such a course. Sir Saul Samuel, Agent-general for New South Wales, said the present was an excellent opportunity for adopting Mr Wcstgarth's suggestion—one which possibly might not ac;ain occur for years. He expressed tho opinion that the loan would be a great success. In all probability, said Sir Saul, the Government of New South Wales would place a loan on the London market in April or May next, when he would be inclined to urge the Government that the loan should be offered at 3 per cent., provided the prospects were as good as they were at present. He would also be prepared to advise the conversion of 5 per cents, to 34 per cents. Sir Saul Samuel said that h6 was not always prepared to place absolute faith in the premiums quoted, as frequently the quotations were only nominal. The manager of the Bank of Victoria, Mr 11. L. Taylor, thinks that the placing of the loan at 3 per cent, would have been risky and possibly an over bold experiment, although the security was undoubted. He denied that the Victorian banks have over lent, and says the tightness is only temporary. Mr Wcstgarth himself says the publication of bank returns has improved the chances of the loan, and predicts that 12 millions will besubscribed and that tho average tendered will reach £101, thereby placing the loan at :U instead of 3 per cent. Mr West-garth thinks Victoria will lose £7i),000. The Times, in tho course of an article on the prospect of the loan, says that it would have been a doubtful experiment to place it at 3 per cent., although it believes the premiums already quoted for it are honest. The loan, it says, will be a certain success, and it anticipates that an average of £101 will be obtained for it.