LAUNCHED IN LONDON.

Waikato Times, Volume 114, Issue 19012, 1 August 1933, Page 5

LAUNCHED IN LONDON.

LOAN FOR CANADA. £15,000,000 PROPOSAL. INTEREST 4 PER CENT. AT PAR. United Press Assn.—Efec. Tel. Copyright. LONDON, July 31. The City editor of the Times states that for the first time for 20 years Canada is issuing a loan in London. The loan will be for £15,000,000 at 4 per cent., offered at par, and repayable over 20 to 25 years. The loan is the first fruit of the Empire declaration to help to maintain the stability of Empire exchanges; as It will Increase Canada’s exchange resources. The newspapers unanimously welcome the Canadian loan. The Daily Telegraph, In an editorial article, says the response cannot be doubted. It is an event of Imperial and International significance, underlining last week’s declaration dealing with Imperial solidarity in monetary matters. The paper expects that the City will welcome the issue and find the terms attractive. i . Canada's return to the London market after 20 years, following last week’s declaration of financial unity by the Empire delegations, continues the article, must be regarded as a gesture of Empire solidarity. At the same time, it is a warning to the United States that the new currency policy may have robbed her of the last hope of rivalling London as an international financial centre. The Daily Mail, commenting on the Australian and Canadian loans, declares that sound Dominion securities are keenly sought. Lifting the ban on overseas lending is a happy result of the agreement between the Empire delegates to the World Economio Conference. The Dominions are given a privileged position which they ought always to.enjoy. Another step has been taken to consolidate the Empire. Too much British money has gone to foreigners in the past, who, have heavily taxed British trade and have now mostly defaulted.

, i V CHANCELLOR’S BAN. LIFTING UNNECESSARY. United Press Assn.—Elec. Tel. Copyright. (Received August 1, 12.15 p.ip.) LONDON, July 31. The Dally Telegraph’s financial writer says that surprise is expressed in some quarters that the Canadian issue was not accompanied by a Treasury announcement of the relaxation of the embargo, as was made in the cases of the Australian conversions. The explanation is that the Treasury considered this unnecessary. The Australian optional conversions came within the Chancellor’s ban, w;hich was for new money issues and applied only to foreign and not Empire loans. The Canadian prospectus states that no part of the proceeds will be remitted, directly or Indirectly to countries outside the Empire. ,

COMMONWEALTH CONVERSION. GASH ALLOTMENTS. United Press Assn. —Elec. Tel. Copyright. LONDON, July 31. . Small cash applicants for the Australian Commonwealth conversion loan of £17,000,000 will receive a ftlll allotment and large applicants' 51 per cent. opened at 15s premium. ' ’ {, ' LATER. •' * AMOUNT OVERSUBSCRIBED. BIG SAVE IN INTEREST. United Press Assn.—Elec. Tel. Copyright. (Reoelvefl August 1, 10.30 a.m.) CANBERRA, July 31. The Assistant-Treasurer, Senator Massy Greene has announced that the London oash and conversion loan of £17,221,000.has been oversubscribed. The total saving in interest would be £410,793. . .' , The issue had been placed on the market at £99, the interest being 4 per cent. Senator Massy Greene stated the total annual saving on the conversions of Australian Issues on London during 1932-3 ’ amounted to £1,066,908, made up of interest, £853,524, and exchange £213,384.