THE TRANSVAAL LOAN

Otago Witness, Issue 2565, 13 May 1903, Page 19

THE TRANSVAAL LOAN

MR CHAMBERLAIN'S EXPLANATION. CARRIED WITHOUT A DIVISION. A FAVOURABLE RECEPTION. LONDON, May 7. Mr Chamberlain, in a speech eliciting warm commendations from both sides of the House of Commons, explained the resolutions guaranteeing a development loan of £35.000,000, which he asked for conditional upon the payment of a war contribution of £30,000,000. The latter would be derived from a future loan, and secured on the Transvaal's resources. The realisation of the enormous potential resources of South Africa would require similar treatment to Australia and Canada, State intervention providing the capital required to enable South Africa to find its own necessaries before it ever could become an important exporter. The Motherland treats the new colonies, apart from direct Imperial interests, as self-governing, which is the only wise and the only possible policy. The bulk of the development loan is to be devoted to the discharge of existing liabilities,, to readjust present charges, and refund to the Exchequer '£6,000, UO" of advance?. Thus the Motherland ivill receive £30,000,000 instead of £30,000,000. The Transvaal will also pay =^,000,000 compensation to loyalists who suffered during the first Boer invasion. Furthermore, the conversion of debts and the purchase c: the railways would leave £9,500,000, whereof £5*000,000 will be devoted to the development of railways, £2,500,000 to land settlement, and £2,000,000 to roads and irrigation. The services of the loan will absorb £1.400,000 per annum, calculated at 4 per cent, for interest and redemption. This will be a first charge on the Intercolonial Council of the two colonies, and subsidiary to the Transvaal revenues. It is estimated that after three years, with assistance from the Transvaal surplus, the loan will leave a surplus of £300,000 for further development. That marvellous result wr.s due to Lord Milner's energy, ability, and unexampled devotion. The resolution was agreed to without a division. The Transvaal surplus of £300,000 mentioned by Mr Chamberlain will be after the paying off of both loans. It is expected that the loan will be covered twentyfold. It is also anticipated that the allowance will be slightly to the advantage of the allottees. The currency will be for 25 years. Dealing in scrip has taken place at 1| per cent, premium. There arc large French and American remittances, and the Bourse in Paris is favourably influenced. The prospectus of the Transvaal loan of £30,000,000 has been issued at 3 per cent, at cart

May 8. The Transvaal loan runs for half 4 century, but the Transvaal is entitled to redeem it in 1923. The first dividend is payable in November. There was a great rush for prospectuses, and the; loan has already been subscribed eight" fold. The list closes on Tuesday. The Transvaal loan is payable in instalments extending to December. The discount for immediate payment, reduces the price to £98 18s Bd. Over 300 millions were subscribed. The loan will probably close to-morrow. May 9. The Transvaal loan has been covered" thirtyfold, French financiers covering it once. There were two tons weight of British provincial applications.