NEW ZEALAND LOAN.

Dominion, Volume 6, Issue 1674, 14 February 1913, Page 5

NEW ZEALAND LOAN.

BONUS TO SUBSCRIBERS,

PRESS COMMENT. Br Teleerarb-Preos Asaooiatlon—OonyriiM London, February 12. The payments ■ oil the New Zealand -83,500,000 four per cent, loan, to bo issued at 08, will bo spread over four months. This, with accrued interest, will make tho bonus to subscribers about 275. The "Westminster Gazette" states that some of the usual underwriters aro refusing to underwrite tho loan. Tho same journal adds that New Zealand is overdoing it. Tho money maVket did not expect that colony to demand anything like three millions. Tho natural effect has been to depress tlio market. THE MARKET GLUTTED. (Eec. February 14, 0.55 a.m.) ■ London, February 13. " "The Times"'says the underwriting of the New Zealand loan was received with decided disapproval. The patience of tho Stock Exchange underwriters is exhausted owing to tho existing glut, j ~ , PRIME MINISTER SATISFIED. • NEED FOIJ CARE AND ECONOMY. ' "Under the circumstances," said the Prinio Minister to a representative of Tub Dominion yesterday, "the result of the loan negotiations is very satisfactory.; Arrangements liavo been made whereby the money moy \ bo; repaj-able within 30 years or-40 years from inow, at tho optioni of the; investor. The transaction lias been liiglily satisfactory, not only to tho Government; but to the people of-Now Zealand. Sir. Allen, in cabling, (vlls mo that the Dominion of New Zealand and tho Government both stand well in-Lon-don. Although our efforts havo been (to successful," added yMr. Massoy, "it, will .bo necessary to exercise both caro and 'economy with regard to our loan money and revenue. Tho .rate at which wo woro able to raiso the loan compares very, favourably with tile rate secured by the previous Government in its loan.negotiations Fonio eight of. nine months ago, About half a million of the amount will be devoted to tho extinguishing of certain small loans which have fallen duj. With regard to the remainder, part will- bp 6et aside for public works, and tho balance to such purposes as will be determined by Cabinet."

REVENUE BUOYANT. 1

COMMITMENTS TO LOCAL BODIES.

Referring to tho country's finances in the courso of some remarks during tho luncheon at tho opening of the inaugural show of the ftlarton A. and.P. Society yesterday, the Prime Minister said he wanton'' J 0 understood that thero was nodifficulty regarding the ordinary revenue which was .very buoyant. For tho ten months up to January 31- the ofdinary revenue had exceeded that for the'corresponding period of last year by J3t>2,000, , which he thought was very gratifying, 1 and a dear indication that thero was no dimculty at all with regard to the ordinary revenue. It was . with the Public Works I'und and.tho funds necessary for tho promotion of land settlement tlia't ;they.were most concerned, but the difficulties in this connection, he was pleased to say, were fast disappearing, and in order to explain tho position, Mr. Massey pointed out that when tho present Government came into power they found that they were oommitted to local bodies to tho extent 0f..0750,000 at a lower rate of intorest than tho money could- bo procured for.; Ho mentioned this to give somo idea of tho difficulties they had to encounter in finding money. They had reduced that liability/by .£30,000, but tho pooplo of New Zealand would now realiso why it was necessary/ to dispatch tho Minister, for Finance to London to arrange immediate finance, matters that had to bo made in connection with the .short-dated debentures which were piling up, and also, for a loan for public works, purchase of lands for settlement, and to provide money to meet tho demands mado in connection with Advancas to Settlers, Workers, etc. ' . .

, The present Government, a now Government, was really on its trial, but ho added it should bo thoroughly understood that' the Government desired , to. givo speoial attention to land settlement, ,and he,felt confident that'herein lay the success of tho Dominion. As loader of tho Government, ho wanted to see the land at presont unoccupied carrying settlement', ana the land that was under cultivation yielding far moro than at present., AS Minister for Lands and Agriculture, ho would like to have done moro during lite short term of office to date, but those who were conversant with the public affairs of the Dominion' were quite aware of the, difficulties which had presented themselves. He . was not referring prir-ticularly-to labour troubles, but rathor to the financial difficulties which tho Government had to face.