"Daily Graphic"
237606.
(Money Market Pall)
515
3,
THE CROWN AGENTS FOR THE COLONIES. There has been a good deal of comment regarding the fiasco attending the issue of the Government of Hong Kong Three-and-a-Half per Cent. Loan for £1,100,000, which it will be remembered was offered by tender at the minimum price of 99 cents. The Crown Agents duly sent out notice that the Loan had been applied for between 98 and 100, but forgot to add that the underwriters had been saddled with 70 per cent. of the issue, a fact which is appreciated on the Stock Exchange by the quotation now at a discount.
In most quarters the standing of the public response is attributed to the tender system being adopted. No doubt, it is one reason, as the public generally does not understand the system of tenders, but this is only another way of saying that the Crown Agents for the Colonies do not understand their business. In fact, the Crown Agents for the Colonies should not be made responsible for bringing out loans, as they cannot be in close touch with the Money Market, and certainly have no means for distributing prospectuses, while the small number of papers used for advertising loans of this description is further evidence that the Crown Agents should not be employed for the raising of money from the public. Had the Bank of England, or one of the large joint stock banks, been responsible, there can be little doubt that the loan in question would have been properly placed.
Times, 21 Feb '06
MAJOR
Circles 3 mm
THE HONG-KONG LOAN.
It is officially announced that tenders for the Hong-Kong Government Three-and-a-Half per Cent. loan were opened to-day at the office of the Crown Agents for the Colonies. The loan was fully covered, the prices varying from the minimum of £99 to £100." The correctness of this statement is not, of course, in any way inconsistent with the fact that the underwriters of the issue have had to take up nearly 70 per cent. of it. This result is unfortunate, and seems to demonstrate that it was a mistake to offer the loan by tender. Issues by tender can only be successful when lenders are exceptionally eager, and, in the opinion of many investment brokers, are always to be deprecated, since the real investor cannot understand them and is never attracted by them.
12
" Daily paphic"
237606.
(Money Market Pall)
515
3,
THE CROWN AGENTS FOR THE COLONIES. There has been a good deal of comment regarding the fiasco attending the issue of the Government of Hong Kong Three-and-a-Half per Cent. Loan for £1,100,000, which it will be remembered was offered by tender at the minimum price of 89 cent. The Crown Agents duly sent out notice that the Loan had been applied for between 98 and 100, but forgot to add that the underwriters had been i saddled with 70 per cent. of the issue, a
Fact which is appreciated on the Stock Exchange by the quotation now
at a discount.
In most guarters the standing
of the public response is attri- buted to the tender system being
e adopted. no doubt, is one reason, as the public generally does not understand the system of tenders, but this is only another way of saying that the Crown Agents for the Colonies do not understand their business. In fact, the Crown Agents for the Colabies should not be made responsible for bringing out loans, as they cannot be in close touch with the Money Market, and certainly have no means for distri buting prospectuses, while the small number of papers used for advertising loans of this descrip- tion is further evidence that the Crown Agents should not be employed for the raising of money from the public. Had the Bank of England, or e of the large joint stock banks, been responsible,
for
Te can be little doubt that the loan in question
I have been properly placed.
MAJO
Cricles 3 mm
Times, 21 Feb 'ob
THE HONG-KONG LOAN.
It is officially announced that tenders for the Hong-kong Government Three-and-a-Half per Cent. loan were opened to-day at the office of the Crown Agents for the Colonies. The loan was fully covered, the prices varying from the minimum of £99 to £100." The correctness of this statement is not, of course, in any way in | consistent with the fact that the underwriters of the issue have had to take up nearly 70 per cent. of it. This result is unfortunate, and seems to demonstrate that it was a mistake to offer the loan by tender. Issues by tender can only be successful when lenders are exceptionally eager, and, in the opinion of many investment brokers, jaro always to be deprecated, since the real investor cannot understand them and is never i attracted by them.
J
12
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