Interest in the Possible Amount Considerable interest is being taken in financial circles in the extent of the Municipal loan which will be floated following the Ratepayers' Meeting. Last year's loan reached the large total of Ts. 4,800,000, which included sterling loan of £750,000, and_ the general belief is that the flotation for the coming year will be at least as great.
With reference to the current year's financial requirements some curiosity has been aroused by 2 note in this week's Municipal Gazette dealing with the Municipal Savings Bank. This announcement states the event of the 1921 Loan being issued at a price giving a return below the current rate of interest (7 per cent. per annum) allowed by the Investment tank, depositors can' withdraw deposits made between the closing dite of the 1920 Loan and the opening date of the 1921 Loan.
This announcement need not be taken as an indication that the Municipal Council has any particwar expectation of obtaining money at rates below what have been current during recent months, although it is known that a_ considerable amount of money is at present lying idle in Shanghai. A certain proportion of this money will undoubtedly go into the new issue of debentures, when announced, but some of it is certainly sot intended for permanent investment.
Tt is not so much the amount of this money, we believe, that kas led the Council to make this announcement as the uncertainty in financial conditions generally. Of late the tendency has been for debenture interest everywhere to increase, but here and there this has received a check. Accordingiy, with a good deal of money available locally, and the outlet generally involving more speculative risk than in normal conditions, an_vnexpectedly small loan might lead to the offer of rates much more advantageous to the Council than at present. In view of such a possibility, rather remote though it may appear to be, the Council has considered it advisable and necessary to safeguard the interests of depositors. How important these interests have become, and promise to be still more in tie Suture, is to be seen from the figures given in the announcement. referred to. which show that between March 1 and 8 the deposits increased to the extent of Tls. 110,-
737.94.
It may also come within tae possibilities of the situation that the Council may resolve upon issuing the present year's Joan in series as the best means of securing themselves against. eventualities. in the financial situation, and were such to be done investors in the Municipal Bank would be equally entitled to the protection which the present notification gives them.
Text read from the printed page and cleaned; old type leaves the occasional error.