The One Million Loan.

Wairarapa Standard, Volume XVIII, Issue 1660, 14 January 1885, Page 2

The One Million Loan.

As wo anticipated, there has been no diilu-ulty in floating the third and last million of tbe three million loan of 1882, and the rate at which the money has been obtained is more satisfactory than might have been expected in the existing state of the London money market. Seven hundred and forty tenders were received for the £1,000,000 wanted, cnvei iug a sum of £3,981,000. Of i he a' s e llaors1l a ors for the one million now floated, those at £99 6s 6d will receive

30 per cent, and these above that amount will receive allotment in full, ft is probable that when full parlioulars have boon received it wil' he found that the whole loan has been taken np at a price slightly under par. This result raav he regarded _as fairly satisfactory. But the floating of the million does not by any means imply that the money so obtained stands to the good. The greater amount of this million was forestalled long ago. In his last Financial Statement, Sir Julius Yogel, the Colonial Treasurer, said :—“About £600.000 of the three million loan will have been spent on open railways; about £50,000 will have been consumed on the charges of raising the loan In short, there will be little, if any, of the third million when it is raised.” This shows that the bulk of this mil - lion had practically been spent long before the loan was already placed on the London money market. It has always been easy for a New Zealand Government to obtain money in advance of a loan to be floated, and the practice has been resorted to in the present instance. In the course of three months more the loan of £1.500,000 authorised last session will be placed on the market. Some time later the loan of £1,000,000 (one million) for the North Island Trunk Railway, will also bo floated. These loans will, for the time, exhaust the direct borrowing proposals of the Government. There is, however, lots of money besides to be borrowed by this colony in an indirect way. There will be borrowing by syndicates, by local bodies, and borrowing in all sorts of ways, for which financial jigdancing the colony will, in the long run, be called upon “to pay the piper.”