During the past week there has been more than one
instance of the success attending fresh issues of capital. The week, however, has also been rendered interesting by the fact that the Chilean Loan, to which I referred a week ago, as expected in the market here, was, at the last moment, secured by the United States. Had the Loan been offered here it would probably have been on the basis of a 7 per cent. issue at about 96, and I should say it would have been well applied for. Partly, however, by reason of the fact that American bankers are not hampered by the 2 per cent. stamp duties with which we are afflicted here, they were able to outbid the English Market. At the present moment, with the American exchange adverse to us, there is, perhaps, no particular reason to regret the tendency of the States to secure a good many of the loans which were more usually associated with London, but it must not be ' forgotten that our ability to make foreign loans has always been very closely linked with our commercial prosperity, and in these stamp duties, as in other forms of burdensome taxation, we get a reminder of the handicap to our activities which must be removed at the earliest possible moment.* *
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