D
Koag Loan.
Hong Kong Loan
Sir,
C.O. 10550
(Rec 27 MAR 06
Whitehall Gardens, S.W.
23rd March
1906
521
Honble
Since we reported to the Colonial Government on
the 23rd of February the placing of the Hong Kong Loan two
Loan issues of considerable amount have been placed on the
market at fixed prices and with such instructive results
that we think it desirable to place the facts on record for
future use and for the information of the Colonial Govern-
ment.
2. On Saturday the 10th instant the Grand Trunk
Railway Company of Canada invited subscriptions for
£1,000,000 Four per cent Guaranteed Stock, through their
Bankers Messrs Glynn, Mills, Currie and Company, at the
fixed price of £100 per cent, but wrapped up in the condi-
tions of issue was accrued interest amounting to 15/- and a
further 10/- in connection with the deferred payments upon
the instalments. The net price of issue to those who might
secure allotment was therefore £98. 15/- per cent.
3.
3. The market were quick to see that the price of
the Loan, which was considered to be well secured, was
decidedly cheap. The Loan was therefore at once rushed and
was subscribed from eight to ten times over by the closing
of business in the middle of the day on Saturday, and it
was at once quoted speculatively at 2% premium. The present
The Colonial Secretary
price
&o 800 &o
Hong Kong.