FINANCIAL NOTES.
Both the credit of the Empire and the extent of present investment resources have emerged triumphantly during the past week from, a pretty severe test. During the past few months we have had some exceptionally large loans for various parts of the Empire, but many of them have been of a renewal character. When, therefore, the Commonwealth of Australia Loan was announced for £10,000,000 in 5 per cents, at par, it was felt that while the terms were not unfavourable to the investor, the amount of the Loan was exceedingly large, especially as it coin- cided with a number of other borrowing operations, including the Czecho-Slovakian Loan for nearly £2,000,000. Moreover, although one half of the Commonwealth Loan was required to repay Treasury Bills maturing in July, the demands on the permanent investor were for the whole /10,000,000, and, consequently, the Market would not have been very surprised if underwriters had been called upon to take up a part of the Issue. That the whole Loan should have been subscribed and the under- writers released may therefore be regarded as very fine testimony both to the credit of the Commonwealth of Australia and to the sponsorship under which the Loan was issued.
* -*
On Monday, June 2nd, over £50,000,000 in War Loan dividends will be disbursed, and while the investment markets have been relying upon the reinvestment of a portion of this 'amount for maintaining prices, it is also true that those concerned in new loan flotations are not likely to be unmindful of the opportunities afforded by this sudden addition to supplies of credits. So far as may be judged, one of the most important loans on the tapis at the moment is the much-talked-of Hungarian Loan, and while judgment as to its merits must necessarily be reserved until the full details are disclosed, I should imagine that there would be no difficulty in hypothecating ample revenues as security. A. W. K.
Previous page
