NEW SOUTH WALES LOAN

Otago Daily Times, Issue 19905, 27 September 1926, Page 9

NEW SOUTH WALES LOAN

MR LANG SATISFIED WITH ISSUE. (Press Association—By Telegraph—Copyright.) SYDNEY, September 25. Mr Lang, commenting on the NewSouth Wales loan, said that it was a 5 per cent, loan issued at 97. In view of the effect upon the London market of the prolonged coal strike and in consequence of the non-reduction of the bank rate, interest in all colonial stocks has declined, and in all the circumstances he was satisfied with the issue. The Agent-General had informed him that no Australian State could borrow the same sum now at a price higher than 97. POOR OPENING RESPONSE. LACK OF INFORMATION AGAIN CRITICISED.

LONDON, September 24. (Received Sept. 25, at 5.5 p.m.) It is understood that there was a poor response to the New South Wales loan prospectus on the first day. ' The general expectation is that the underwriters will be saddled with a considerable proportion, though at their special request the list remains open for five days. The market awaits the result with unusual interest, because it is the first Australian or New Zealand loan since the strike. The Government will get about 944 per cent, net after paying underwriters, the bankers’ commission, and the advertising. The newspapers again deplore the absence of fuller particulars of the objects for which the money is intended, and also an exposition of the State’s indebtedness. The lack of a Sinking Fund is criticised, but special criticism is directed to the neglect to inform dealers that the loan was imminent. The Daily News says that the market is annoyed to find that a surprise had been sprung. The Government was on the horns of a dilemma, but it would be better to inform the market and take the risk of some leakage to the public. The paper adds that it is a great mistake to afford only an absolute minimum of information in the prospectus.—Sydney Sun Cable.