ANGLO-COLONIAL NOTES.

Star (Christchurch), Issue 4740, 4 September 1893, Page 2

ANGLO-COLONIAL NOTES.

« [FROM OUB LONDON CORRESPONDENT.] London, July 14. THE NEW ZEALAND LOAN AND MERCANTILE AGENCY COMPANT. The suspension of the New Zealand Loan and Mercantile Company is a serious business for Sir James Fergusson. The Financial Times says : — One of the most notable events in the recent history of the Company was the issue, in July, 1892, of .£550,000 in 4 per cent debenture stuck. This was specially secured by? a mortgage to trustees (the Eight Hon Sir James Fergusson, Bart., Saron Schroder and Walpole Greenwell, Esq.) "of the whole of the uncalled capital," amounting to £3,137,357, and by a floating charge on the undertaking of the Company. By a suspension of payment these trustees will be placed in a very delicate position, more particularly as one of them— Sir James Fergusson — is also a Director of the Company. There may be nominally a very large margin between the amount of the debenture specially secured and that of the uncalled capital mortgaged; but until the debenture stock in question is satisfied, the trustees dare not part with one atom of their security, either as a mortgage on uncalled capital or as a general floating charge. It was in con- ! nection with an issue of .£550,000 of this j debenture stock that the mortgage on the | uncalled capital was brought forward, but j that amount was only a fraction of the j total contemplated. In the prospectus of i July, 1892, it wes stated " the debenture ' stock to be secured as above stated is £3,137,357," the exact amount of the uncalled capital ; and the holders of out- , standing debentures wera invited to . convert on certain specified terms, in- j solving not only their receipt of pound for pound in the new stock, but also a cash" payment of such amount as would nut only capitalise the difference of interest, but would also allow for the discount of six per cent in the issue price of the lir3t .£550,000 offered for public subscription. We fail, by the way, tD find in the latest balance-sheet or P. and C. , iccount any item which appears to represent that discount. The issue was made it 94 per cent, and it is currently reported vas taken by the issuing house at 90. It' -hat figure is correct the Company would bourne a liability of £550,000 for cash eceipt3 of £495,000, and the difference of £55,000 must appear somewhere in the j .ccounts." It is (continues this authority) his moitgage of uncalled capital : rhich iB likely to be the cause of the j reatc3t difficulty in reconstructing the J Jompany. By the Articles of Association ' b is provided that the borrowings shall not j xceed the amount of the uncalled capital, ut that the restriction shall not apply to uaranteed mortgages, to moneys raised n bills of exchange, to loans from bankers^ i

ir to moneys obtained by any transactions lot being a loan or advance to the Com>any on debenture or debenture stock, nortgage or loan entered into in the puree and for the purposes of the mercanile business or agency of the Company. ' These exemptions, taken in conjunction ffith the mortgage of the uncalled capital :o the debenture holders, have the practical effect of disassociating the loan department from the mercantile and agency JUBiness, and of depriving creditors intha atter branch of specific security from the incalled capital." Special attention has been drawn to the :act that no fewer ihan three members of Parliament, Sir John Gordt, Sir James EPerguseon and Sir George Buesell are Directors of the Now Zealand Loan and Mercantile. " Tay Pay" shows a disposition bo dwell on the subject. THE SAVAGE CLUB. There was a good deal more of the Imperial Institute than the Savage Club about the annual dinner of the latter at the Whitehall Rooms on Saturday evening. The Australasian Agents-General were all there, bo were Lord Kimberley, Lord Knutsford, Mr Woodall, M.P., sundry ex-Colonial Viceroys, Sir P. Abel, ind the Thakore Sahib ot Gondal. One looked, however, in vain for the faces o£ many of those " old Bohemians" who are the real pride and glory of the Savage Club. Some guests thought 35s pet head too much to pay for a dinner, whilst; others objected to spending that sum in the glorification of Abel, Vine and Co. The latter -was unquestionably the bußiness of the evening, but even the proposers of their healths did not display any exuberant enthusiasm for their task, and the applause Bounded part artificial, part satirical. In addition to Sir John Bray, Mr Perceval, Sir Edward Braddon, &c, Sir Walter Bulier and other Imperial Institute Commissioners were amongst the guests. THE WEDDING PBEBENTS. The display of the Duke and Duchesß o£ York's wedding presents at the Imperial Institute has given the attendance there a tremendous fillip. In the first few hours .£3BO in shillings was taken at the doors* and every day since the flow of visitors has been unceasing. One cannot but admire the promptitude of Sir Somers Vine in seizing upon this opportunity to at once popularise the Institute as a resort and augment its funds. PERSONAL AND GENERAL. One continues to hear every day of fresh cases of hardship arising out of the Australian Bank failures. Sir Saul Samuel states that his income is reduced at least ■£1000 per annum. Fortunately he can afford it, but there aie others less favourably circumstanced who appear to have lost everything. Mr Sydney J. Murray, the principal leader writer on Australasian topics for the Financial Times, has been appointed London correspondent to the Australian Banking and Insurance Record. Mr Mennel (whose good word is worth having on such subjects) considers that though Mr Murray's remarks on Colonial matters are often pungent, his views are sound, and that there can be no question as to his ability as a writer, and his perspicuity ac a financial critic. Henceforward therefore read, mark, and inwardly digest the London correspondence of the Australian Banking and Financial Record. The Rev Thomas Flavell, erstwhile ofi Merivale, Christchurch, was invited "aa one of the distinguished Colonial clergy now resident in Eugland," to the clerical feast at the Mansion House on Weduesday evening. He goes this week to Jersey on S.P.G. work, and will pay Scotland a first visit in August. Sir Frederick and Lady Broome are over from Trinidad on a visit, and have received many old Antipodean friends at their rooms in Clarge* street.