CO129-336 - Governor Nathan & Public Offices - 1906 [11-12] — Page 526

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.