SAO
510
under the conditions of the underwriting arrangement.
11.
Whether the Loan is to be regarded as a success or as a failure will depend upon the point of view from which the matter is looked at. From the point of view of the underwriters the Loan is of course regarded as a comparative failure as they will be required to look up part of their resources until they can pass on their holdings of the Loan to other hands. For their risks they are however paid by the 1 per cent which they receive as underwriting commission, a portion of which they can well afford to share with the public. Their only grievance in the matter is therefore that they have not made in the first instance so much out of the business as they hoped to do.
From the point of view of the Colony the issue may however be considered to be a decided success. The existing Stock was standing at a nominal price of 100 to 102 but there was no Stock on the market and there was £1. 3. 4 accrued interest in the price. The net price was therefore about £98. 16. 8 per cent. The Colony on the other hand has placed its Loan at a price of £99. 1. 0 less expenses or allowing for the value of deferred payments at the rate of £98. 11. 4 and will pay at the rate of £3. 12. 10 per cent for the money which it has lent to the Chinese Viceroy at 4 per cent.
12.
While however we consider that an excellent bargain has been made for the Colony and that the Colonial Government should be well satisfied with the price it has obtained for its loan we ourselves are a good deal disappointed with the general result of the issue. When the Loan was underwritten it was received with much favour and there was every prospect that the issue would be a great ...
SAO
510
under the conditions of the underwriting arrangement.
11.
Whether the Loan is to be regarded as a success
or as a failure will depend upon the point of view from
which the matter is looked at. From the point of view of
the underwriters the Loan is of course regarded as a
comparative failure as they will be required to look up part of their rescuroes until they can pass on their hold- ings of the Loan to other hands. For their risks they are however paid by the 1 per cent which they receive as under- writing commission, a portion of which they can well afford to share with the public. Their only grievance in the matter is therefore that they have not made in the first
instance so much out of the business as they hoped to do.
From the point of view of the Colony the issue may however
be considered to be a dooided success. The existing Stock was standing at a nominal price of 100 to 102 but there was no Stook on the market and there was £1. 3. 4 accrued
interest in the price. The net price was therefore about
£98. 16. 8 per cent. The Colony on the other hand has
placed its Loan at a price of £99. 1.0 less expenses or
allowing for the value of deferred payments at the rate of
£98. 11. 4 and will pay at the rate of £3. 12. 10 per cent
for the money which it has lent to the Chinese Viceroy at
4 per cent.
12.
While however we consider that an excellent
bargain has been made for the Colony and that the Colonial
Goverment should be well satisfied with the price it has
obtained for its loan we ourselves are a good deal dis- appointed with the general result of the issue. Then the
Loan was underwritten it was received with much favour
and there was every prospect that the issue would be a
er eat
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