THE NEW SOUTH WALES LOAN.

Otago Daily Times, Issue 18547, 6 May 1922, Page 8

THE NEW SOUTH WALES LOAN.

The "Government in New South Wales has acted boldly in offering per cent, interest only on the loan which it has placed upon the London market. The New . Zealand Government has found reason to congratulate itself upon its recent success in securing five millions from British investors at 5 per cent, at par. Whether Sir George Fuller’s jubilation oyer the result of the New South Wales Government flotation is or is not warranted is a point upon which judgment must be suspended until we learn at what price the State’s loan will bo subscribed. The State Premier may b#a little premature in his rejoicing so far as it i§ based upon ah expectation that the cost of the issue will work out on a better basis than 5 per cent, at par. Nevertheless, the loan, possesses the significance which is attached to the fact that it is the first 44 per cent, issue on behplf of an overseas dominion since 1916. The terms of the flotation of the Commonwealth, West Australian, and New Zealand loans, have indicated the tendency this year the easing of the London money, market. Evidently plenty of money is available at the present time for the purchase of colonial stocks at lower rates than have been paid during the past few years. This is a good thing for the Governments in the dominions, even although money is still costing them more than was the case before the war. But it is not altogether a good sign that there should be these large sums of money at Hoine for investment in colonial securities at What, all things considered, is a comparatively low rate of interest, sinco it indicates that the possessors of capital iij. Great Britain are dubious, not to say timid, about investing it in industrial enterprise in their own country. Possibly the reduction in the income tax which has jnst been announced may contribute towards a recovery of confidence in ■ British indns- ■ trial investment's, aiid dip the interests

of the community it is to be hoped that such willbe the case, for this confidence is necessary for the satisfactory rer establishment of the industrial situation at Homo. In the meantime, however, the volume of money available for investment elsewhere points to the conclusion that British industry is not considered a sufficiently attractive field for investment, and if so the fact is one that is the reverse of helpful either to trade or to employment.