THE TRANSVAAL LOAN. THE SURPLUS.

Star (Christchurch), Issue 7700, 8 May 1903, Page 3

THE TRANSVAAL LOAN. THE SURPLUS.

DEALINGS IN SCRI?. United Presa Association— By Electric Telegraph— Copyright. (Received May 8, 9.17 a.m.) LONDON, May 7. The Transvaal surplus of £300,000, mentioned by Mr Chamberlain, will be after paying both loans. , It is expected that the loan will be covered, twenty -fold. It is also anticipated that the allowance will be slightly to the advantage of the allottees. The currency will be for twenty-five years. Dealing in scrip has taken place at 1* per cent premium. There are large French and American remittances,, and. the Bourse in Paris is favourably influenced. (Mr Chamberlain, in a speech eliciting warm commendations from both sides of the House, explained the resolution guaranteeing a development loan of thirty-five millions, which was asked conditional upon a war contribution of thirty millions, the latter derived from a future loan 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 becomes an important exporter. The Motherland treated the new colonies, apart from direct Imperial interests, as self-governing, which was the only wise and only possible policy. The bulk of the development loan would be devoted to the discharge of existing liabilities, would re-adjust present charges, and refund to the Exchequer six millions of advances. Thus the Motherland received 36 instead of 30 million®. The Transvaal would also pay two millions compensation to loyalists who suffered from the first Boer invasion. Furthermore, the conversion of debts and the purchase of railways would leave nine and a-half millions, whereof five would be devoted to the development of railways, two and a-half millions to land settlement, and two millions to roads and irrigation. The services of the. loan would absorb one million four hundred thousand per anmim, calculated at four per cent for interest and redemption. This would be a first charge on the intercolonial Council of the two colonies, and the subsidiary Transvaal revenues. It was estimated that after three years, with assistance from the Transvaal surplus, the loan would leave a surplus of three hundred thousand pounds for further -development. Thai marvellous result was due to Lord Milner's energy, ability and unexampled devotion. The resolution was agreed to without division.) THE PROSPECTUS. (Received May 8. 9.48 a.m.) LONDON, May 7. The prospectus of the Transvaal loan of thirty millions has been issued at, 3 per cent par.