THE VICTORIAN LOAN.

Gisborne Standard and Cook County Gazette, Volume II, Issue 252, 26 January 1889, Page 2

THE VICTORIAN LOAN.

MB WESTGARTH’S EXPLANATION. BROKERS’ TACTICS. London, Jan. 24. Mr Westgarth states that the Manager of the London and Westminster Bank is disappointed that the Victorian loan did not bring the highest price yet recorded, Reports, however, received by the mail yesterday, revealed the unexpected acuteness of financial reaction in Victoria, and private letters announced aeveral failures were impending. The news unsettled the smaller investors who were dependent on the brokers for advice.

The bankers admit that the principal cause of the loan not realising (he amount expected was a tacit conspiracy among tho brokers to deprecate the loan, because they were alarmed lest a high premium should deprive them ot a margin for re-selling the stock. Ths brokers are jubilant at the result of their tactics, and expect to unload the loan at a premium of one per cent. It is generally conceded that so low a minimum as par was unwise, and that 102 would have been preferable end given tfie loan a stimulus.

Mr Westgarth again states hi* belief that a three per cent, loan would have been better, as the brokers dislike stock on which they have to pay a premium, finding it difficult to get rid of it at a profl’, The livelier the speculation the better it is for the oolony. The Standard confirms the '• bearing ’’ of ths loan by the brokers. It says, however, that the average pries is dear enough in all conscience, though the last New South Wales loan was a little dearer to the successful tenderers. It is expected that colonial stocks will riss, since the success of one colony is beneficial to the others,