THE MILLION AND A HALF LOAN.

Star (Christchurch), Issue 5283, 13 June 1895, Page 1

THE MILLION AND A HALF LOAN.

DETAILS OF THE ISSUE. [from otib own correspondent.]

London, May 3. It seems I was mistaken in inferring that the Bank of England had made the retention of the inscribing of your stock the price for guaranteeing the succesß of the new 3 per cent loan. The bank has not guaranteed its success in any manner, nor put itself out of the way to help. Mr Ward's telling me the success of the loan waa certain led to this blunder. I concluded that it must be already practically underwritten. But the Agent-General Bays, " Nothing of the sort. The loan is being brought out in the ordinary conventional fashion. Mr Ward didn't mean you to take him co literally. We consider success probable certainly, but till the tenders are opened nothing is sure."

The minimum originally fixed on for this loan was 92, and Sir Weatby Perceval believes it would have 'floated perfeotly easily thereat, but the bank at the last strongly advised 90, and rather reluctantly the Agent-General and Mr Ward gave way on the point. The announcement of the loan excited hardly any remark, the majority of the papers, contenting themselves with a mere advertisement of the faot. No doubt the cause for which the money was being raised had to a large extent disarmed oriticism. ■ .

THE TKNDKBS, <&C.

The effect of your Treasurer's eloquence, combined with the issue of the 3 per cent loan, has been to drive up New Zealand stooks in a mOBt remarkable manner. The 3i per cents now stand at 104$ and the 4 percents at 112&. Financiers in the city with one accord predicted that the. new issue would lead to a fall in colonial stocks in general, but precisely the reverse occurred. Business in the new loan took place yesterday at 94. Altogether Mr Ward's achievement has proved extraordinarily successful, and city men consider they are paying him a high compliment when they call your Treasurer another Sir Weatby Perceval.

INBCBIPTION OF STOCK.

The idea of transferring the inscription of stock from the Bank of England to the Bank of New Zealand had to be temporarily given up, because of legal difficulties, but that something of this sort will eventually take plaoe I do not doubt. If seems that long before your Treasurer came Home the Agent-General persuaded Sir Saul Samuel and Sir Jam6B Garrick, whose colonies alflo employ the'Bant of England to inscribe their stock, to join him in a demand for lowered. rateß. The trio . intervjieif ed the "^te'^Gdvernorj Mr Powell, who declined to ; listen to the proposal He was then delioately advised to look out for squalls. Subsequently, Sir Westby and Mr Ward again pressed the matter on the new Governor, and, after a long talk, told him the bank would certainly lose their work, and probably that of the other colonial also, it the directors remained obstinate. There can be no doubt that this seriously alarmed the new Governor (Mr Sandeman). who foresaw a lobb to the bank under his regime of £30,000 a year. He talked to his Board, and ultimately they informed Sir. Saul Samuel (as senior Agent-General of the three colonies concerned) that , the bank had decided to reduce its charge for inscription .£IOO, per million. Sir Saul now plumes himself on the concession, but the plain truth is, as I have said, that it was proposed by Sir W. Perceval and wrung out of the bank by him and by Mr Ward. I may add; neither of these gentlemen considers the concession sufficient, and that the subject must not be considered done with. .

Sir Weetby's notion of the proper way to work the inscription of stock economically is that, the colonies should setup a joint office for the purpose. This seems to me the moat pregnant and common-sense suggestion yet offered. As the work of different colonies falls dne at different timea it would really not require a much larger staff to do the inscription of three or four colonies than to do the work of one. I think the Agent-General should be instructed to t6at the practicability of this excellent idea. It would, no doubt, require a lot of diplomacy to bring such an arrangement about, but i£ anyone can do it your present Agent-General can.