OUR LONDON LETTER.

Otago Daily Times, Issue 10418, 22 July 1895, Page 3

OUR LONDON LETTER.

(From Oun Own Correspondent.)

London, June 14,

DUNEDIN MUNICIPAL LOANS CONVERSION,

Yesterday I was chatting with a city fiuancial expert about the proposed conversion of the Duuedin municipal loans, which the late Mr Leary camo Home to carry out. "If you are writing to New Zealard," said my friend, " tell theui it is a great mistake to go pottering about with only a portion of their city debt. I hear they want to convert only £200,000 of the total £650,000, or thereabouts. That U very unwioe. They will be able to make far batter terms by dealing with ths whole amount at tonce, and it ia a capital opportunity for doing so."

''When you offer only a portion like that," he continued, -'V it arouses doubt acd uoc.r-tr-iuty—almost distrust. The holders of new .stook wonder how they wiil staud as regard. thia holders of old stock, and any sort of doubt operates'prejudicially to the success of such operations. No; let'them go in boldly and convert the whole debt iuto new stock, aud then they -will stand -.infinitely, better in the m-H*ke.t, bisidSs makiug'a good saving. If they try tho smaller sum it iii nob by any means certain they will be able to work ifc a. aIK" '..-■■"" .-"■'

"There is-another .thing," he went on to say. " Such operations are carried out, much bett_r by individual agents, who can personally hunt up the bouduolders and induce them to cotne in, than by banks or otiier lltiancial institutions, who cannot look aft_rfh. matter: with such close personal attention as these operations require if they are to succeed. At least that's toy opinion. You may take it for what it ie worth "

I called on Mr 11. J. Gibbs, who wan, I believe, to co-update with the Uta Mr Leary in the matter. He told me that nothing had yei been definitely arranged, and that he whs not in a position at present to impart any it-fo.ma-Jiou on the subject, except that various negotii--lion-_ were still in progress. Was it not Mr Gibbs, by-tho-bye, who was so remarkably successful in "'pulling through" the Oamaru conversion, which set that overburdened town on its legs agaiu? I f,.ucy it was. If fo, I should think the Duueuiu conversion could hirdly be in better hau-18. Personal prestige and experience,is very useiful iv such ci.s_.-s aud goes a very long way in tbe city. The praauut is an excellent time for working any curiver_ioa scheme, for New Zealand's credit never stood higher, if co high, iv the ' London money in irket

THE COLONIAL TREASURER'S MISSION. Mr and Mis AVard duly took their departure on the 31st ult. Several friends assembled ou fcusfcon platform to bid them good-bye. Among them I noticed Sir Wusfcov Percev.il. Mr Heuniker-IL.atoii, M.P , Mr James Huddirfc, Mr Harrison Davis,' Mr Philip Meuuell. Mr A. b Rathbone, and others. Some beautitul bmquetß were presented to Mrs Ward, who almost needed a carriage cunparlmenfc to hersolt to bo.d her floral treasures. The weather w " m' 61' »° fc* and all WPnt Pleasantly. Sir VVcsthy 1 -jrceva] accompanied thorn as far as of, ■ . " jrsfc st°PP"ge made by tha " special " —82 miles and a-half from London,—and, after a. Uiial good-bye at the carriage door, returned to town by the next up train. Mr and Mrs V. ard embarked at Liveroool on board tbo Lucarna, lor Now York, wiih the intention of proceeding thence to Ottawa, Vancouver, and Auckland.

Before Mr Ward's departure he had the satisfaction of knowing that the success of the pending financial operation in connection with the wrTr.™ -^ 6W Ze;llan<l was assured-that. i,.bU UOO of . par cent-,, debentures in fche Bank ot New Zealand Estates Company went off liko wildhrn. They were, in point of fact, applied lor largely in excess, and a considerable proportion fell into the handi of present holders of the stock. This speaks well for the ronfldence felt. But, indeed, the security ought to be absolutsly "gilt-edged," for it is virtually that of the colony itself, and is distinctly so regarded in London. People persist in trusting New Zealand and believing in ii, notwithstanding all that Mr A. J. Wilson, and the Statist, and the Investors' Guide, and1 the btandard can or could say iv the colony's disparagement.

THE DAIRY PRODUCE TRADE. n-B-n- th' S week'B S*u Franciico mail steamer Mr Henry Reynolds leaves for New Zealand. It will be a flying visit, ss he intends to be back in London iv time for the nuxfc butter season-that is to »ay, by October or November. He will travel prer wo .t of the colouv with the object of explaining clearly the present altered position^ and prospect!l, of (he colonial butter market in London, and of suggesting the course which he deems desirable in existing and probab'e circumstances.

No living man has a closer or more thorough knowledge of all the factors in the problem of the colonial produce trade than Mi- Reynolds He has brought to bear on the question—one of vital importance to the colony—special powers of.mmd and judgment, which he poss-.Bses in a marked degree. I cannot do the New Zealand producers a bstler service thau by earnestly advi-ung them to give an attentive ear to his counsels. He has Btudied the quest'oa in all it. complex ramifications so'fully and earnestly that it would indeed be most difficult to discover- any possible contingency which has nofc alreaoy been carefully thought out by him. His opinion is therefore most valuable.' What Mr Reynolds will have to say to New Zealand fgtmers, and dairymen, snd buttermakers may nofc be entirely palatabe. Ab first I should imagine it will be dtcidedly unpjJatttr _? e ""j; hRVe t0 teU °f pereisteut'y low and falling price., of the utter failure of tbe pcicy of cold storageand waiting for a bett»r inar.tefc, of dubious proFpects as to futurs improvhmont, . fl f the present hopelessness ef ireight reductions, of the inevitableness of lower rates for m.llc if further exportation is to contiuue afc all—pertainly of a lowering to 2id aud perhaps to less. *

But, on the other hand, he will be able to state trom his own knowledge and investigation that in spite of the severity and temporary victory of the Scandinavian competition with New Zsnland for the butter trade with England, that competition has been carrie 300 under such ruinous conditions that ifc cannot continue indefinitely on the same terms, lt hai become a matter of mutual throat-cutting between New Zealand and Scandinavia. If New Zealand can hold out a httle longer, she cau baat Denmark, bweden, and Norway. Because relatively high as are the prises obtained for Danish batter they do not p.iy the producer, owing to the heaviness of his expenses. That hss been conclusively and indfniendeutly ascertained by Mr Reynolds aud Mr Vagg. Prices which would fairly pay New Zealand producers would, if persistent, drive Denmark and Co. out of the market. TheT.iore.let nob New Zeshnd producers despair: let them, on the contrary, pluck up spirit aud resolve to wm by producing .at the emalicefc possible cost, and by acting on the shrewd advice which such experts as Mr Reynold., and Mr Sjamnel Lowe are able to give tbem. It cannot bo too plainly understood that there will be no more holding over of butter in cold store lor the chauce of better prices. That has proved a ghastly failure. Exch season's stuff wi_i have to be cleared off at tho end of each season. No sane person in England will wish cold storage again afcer last season's disastrous and costly experience. Tha new plan of auction ssles will exercis» a good influence by fixing a trustworthy standard price, and by obviating the necessity of " ola.ug_it._r " sales such as have occurred so often tins ytar and last, when brokers and agents were obliged fco clear out their congested stocks. I honestly think, nftcr much careful inquiry, that under the improved system much more favourable results may be looked for.

THE TONOARIRO'S MISHAP. The cable has doubtless conveyed to yon fche intelligence lhat the Tongariro, which left Loudon on the 30th ult., had a mishap ou hor passage down the Channel, and had to rsmain for repairs at Plymouth, whence she has not yet made a fresh start. The mishap was referred to in the London papers (ar.d possibly h&s been telegraphed to you) as a slight one.'but as a matter of fact ifc was of a very serious character.

There was some little difficulty in getting afc the truth of the matter, so I wont direct to tha London manager (Blr Strickland), who gave me full information sa to the circumstances. Ifc seems that to all appearances ftverything was right.at midnight on the day of-the'Tongariro's departure from Loudoa. The chief engineer made a thorough inspection -_t 12 o'clock, before turning in for his "watch below"; but some time between 2 and 3 a m. a sort of dull explosion was heard, and there was a terrific tush of steam from one of the boilers, blowing the lire out of the furnaces and causing great consternation in the engine room. Fortunately no one was injured, and the escape of everyone below st_ero3 little short of miraculous. It is a wonder that they were not killed or fatally scalded by the tremendous rush of super-heated steam.

As soon as .possible the d-imaged boiler was disconnected frpm the others, and whtn the steam cleared away sufficiently to permit it, careful examination to- made as to the cause and of the raiehsp. It*-war found that in some way which has not yet been explained the water iv one of the boilers had been allowed to sink dangerously low. The consequence was that the plates became seriously overheated, aud iv tho end tha comonstion chamber collapsed, and the whole cuambsrand fire-boxes completely caved ia—the hi '" fsct' fa,,'rly t,urst a 6 tue combustion •t? v end' the who"c of t)xe remaining water '"te-Hlffl w RB instantly turned into superi* : . steam, and fche consequence enßued vi i b&VQ already described. . the rupture of the boiler occurred w m , po,nt where the least general damage womo be caused. Ifc was a most remarkable arm providential escape t i, afc the boile? did not explode m a ,]. fferent direc .iio_i, in which case widespread devasution, if not fche tofc_l

■-**"g'--c»'re-«_smn«at!asaEME_.„^ "7rirari-itrf»ivt>*onamc-jLj,Mrc«i-ji des'-ruction' of the ship, might have occurred. I 1 As ib was, the wsac-iiuery of the Etoamer sustained a great deal of daniiije. On ascertaining what had haop'Ae.d Capt*in Mayofs decided to ruuforSoithead, the nearest pomt accessible,- aud ou arrival telegraphed to Mr Strickland, who immediately went down and boarded the steamer. Finding on consultafcioa with fche ciptain and engineer that the Tongariro could proceed with safely to Plymouth, Mr Strickland directed thafc the steamer should go on thither instead of returning tn ,nut 0 refii;' as had b?ieu flrst thought of. Ihe rong..riro reached Plymouth in safety,' and is there still. Mr Strickland, on her '?5 m<" *bere' Promptly took steps to bave her thoroughly surveyed by. a compefcant nautical surveyor, who gave instruction* for the repairs to be done whioh were deemed necessary ; but i the Board o_ Trade wss uot quite-satisfied, and sent down a speoial surveyor;' who suggested I one or two altera! ions in details of minor importance in themselves, but involving Considerable turt_.ee delay in carrying out. Meanwhile' her passengers are living on board, and are having fine times ashore, every "day eajoymg the bciutif-s of Devonshire atfthe rao/fc delightful season of, Ihe year. I have just • learned that she docs nofc sail till the 13th prox