LONDON.

Tuapeka Times, Volume XXVIII, Issue 4339, 29 April 1896, Page 6

LONDON.

ANGLO-COLONIAL NOTES. London, March 10. COLONIAL PATRIOTISM. General Laurie, who is mainly responsible for the Colonial Marriages Act, asked "Colonial Joe" on Friday night whether copies had been received by the Colonial Office of the patriotic resolutions said to have been passed by the Canadian Parliament, and the despatch reported to have been sent through the Premier of New South Wales by the Governments of the Australian colonies, and a Bimilar despatch from the Government of New Zealand, " assuring Her Majesty of their unswerving determination to make every sacrifice to perpetuate their connection with the British Empire." Mr Chamberlain acknowledged having received the Australasian messages, and promised when the Canadian came to hand to lay them all on the table. Mr W. Johnston, member for Belfast South, wanted to know whether any notice could be taken of the fact that on the passing of the resolution •in the Canadian Parliament the whole Assembly rose and sang 'God save the Queen,' and Mr MacNeil, who sits for Donegal, queried whether it was not a fact that the demonstrative Legislatures had complete management of their own internal affairs —in fact, Home Rule. But Joseph answered never a word. Mr MacNeil's question, of course, was a direct insinuation that if Ireland had had Home Rule the Irish members would have done the same as the Canadions and Australians. But in view of their frequently-expressed sentiment — ' ' England's difficulty is Ireland's opportunity "" — we must be pardoned for being somewhat sceptical on this point. RUSSIA IN AUSTRALIAN WATERS. There are plenty of indications that Russia intends, if not to challenge British supremacy at sea, at least to become the second maritime Power. It is said that her rulers have in their minds a naval programme beside which Mr Goschen's propositions with regard to the English Navy will show insignificantly. But it is recognised by the Press of the Czar's realm that warships alone are of comparatively little value so long as Russia has no coaling stations outside her own boundaries independent of other nations' control. The 'Novoe Vremya' dwells upon the necessity of acquiring stations in the Indian and Pacific Oceans, as the English and Japanese harbors, where the Russian ships at present obtain coal, may at any time become unavailable, and points out that within easy reach of the northern coast of Sumatra, nearly In the same latitude as the Straits of Malacca, is situated the Island of Pulo-Wai, which, although belonging to Holland, lies outside Duich M waters. According to the ' Novoe Vremya ' that island has two good harbors, one to the north and the other to the south, and a lake in its midst. It asks whether this would not be a desirable coaling station for Russia. It remarks that the coal produced from Cardiff is good but expensive, whereas that bought in Japan is of bad quality. A short time ago coal of good quality was discovered in South Sumatra, whence Russian ships at Pulo-Wai could easily take their supply. The Island of Pulo-Wai is of little value to the Dutch, owing to the constant attacks of the Achinese. The cession of this small territory would not in any way damage the prestige of Holland — at least, so says the 'Novoe Vremya.' THE QUESTION OF LOAN ISSUES. The scribe who supplies the ' Financial Times' with "banking notes" warns the colonies against following in the steps of South Australia and having their loans subscribed at the offices of the AgentsGeneral instead of with a leading banking institution. "It appears," he remarks, " that the idea is not confined to South Australia, but is being contemplated by the other colonies. We hope for their sake that the idea will not be further carried out, as undoubtedly it would be a step in the wrong direction from more than one point of view. For instance, the fact that New South Wales and New Zealand loans are inscribed at the Bank of England gives a considerable amount of kudos to the securities, and in addition tends to facilitate new issues. After the events of the past few years we hardly think that such a step as the transference of the supervision of the loans from neutral parties would be likely to inspire confidence among investors." Judging by the success of the South Australian 3 per cent, loan issued last week it seems to me that the ' Financial Times ' man greatly overrates the " kudos " attaching to a loan by reason of its issue by "a leading banking institution." I remember also that one of the previous South Australian loans, which had Messrs Glyn, Mills at its back, was an utter failure. The truth ia that it does not much matter how a loan is issued provided the term 3 are good enough and the market is in a favorable condition to receive it. The statement often made, that the fact of a loan being issued by the Bank of England is taken by many small pro- i vincial investors as meaning that the bank is in some way responsible for the interest, is true without doubt. But it is surely not the wish of colonial Governments to take advantage of such pristine innocence. It is rather like obtaining money under false pretences. As a matter of fact, however, the small investor rarely gets any part of the amount he tenders for owing to his ignorance of market conditions. It was observable during the reading of the tenders for the South Australian loan last week that almost all the small tenders — those for £100 to £500 — were made at very little over the minimum price of issue, not one in a dozen going over 96. Sometimes, of course, the small fry err on the side of generosity, but usually they seem to take the minimum price as their basis of calculation instead of the conditions of the issue and the market indications. The success of the South Australian loan was made by big syndicate tenders for £20,000 up to £700,000 at £97 or over. Would these tenders have been bigger or better in price if the loan had been issued by Glyn, Mills or the Bank of England ? COLONIALS AND CHEAP MONEY. In a lengthy leader on 'Colonials and Cheap Money* the 'Financial Times' includes a table which shows at a glance the enormous appreciation in colonial government securities since the close of 1893. The profits shown in this table to a patient holder are startling. The New South Wales 3.\ per cents., redeemable in 1924, stood at 95 on December, 1893, whilst at the end of February the market quotation was 110g — a rise of 15|. New Zealand fours in the same period have risen from 106 to 115, Queensland 3h per cents, from 90 i to 1074, South Australian 3^ from 92^ to 109, Victorian 4 per cents, from 102^ to 110^, and 3£ per cents, from 92 to 106f. These prices do not show the lowest point reached during the paralysing bank crisis, for in 1893 the New South Wales 3£ per cents, touched 83|, New Zealand fours 97, and Queensland 3^ per cents. 75 ! Rich indeed must have been the harvest of those having faith in the celebrated and muchadvertised " recuperative powers of the Australian colonies." Of course, the fact that to-day Australian Government stocks cannot be bought to pay the investor more than £3 6s 3d per cent, has nothing whatever to do with the British public's faith in the colonies. It is merely the result of " cheap money," according to financial editors. The ' Financial Times ' is not sur. prised at the appreciation shown in its table

but deems it strange that the colonies have taken so little advantage of the high prices ruling to increase their indebtedness. " The demands of the colonies for fresh loans," it says, " have been on a very moderate scale and chiefly for conversion purposes."