NEW ZEALAND LOAN.

Dominion, Volume 7, Issue 1971, 30 January 1914, Page 7

NEW ZEALAND LOAN.

ISSUED IN LONDON. STATEMENT BY THE PRIME MINISTER. ?/HAT THE MONEY IS. FOR. By Telesrajjh—Prcss toeoclation—Oopyrielil London, January 28. Now Zealand is issuing a four and a half millioiis 4 per cent, loan at 100J, redeemable in 1924, AN OPTION TO CONVERT. (Hee. January 30, 0.5 a.m.) London, January 29. The New Zealand loan carries'an option to convert into four per centum stock immediately at 102) er later at 101.

BIG BORROWING YEAR. THE FIRST INSTALMENT. A statement. regarding tho loan was made to a Dominion reporter yesterday by tlio Prime Minister ttbo Right lion. W. F, Mas«ey). "An unnsually large amount of borrowing was rendered necessary this year," he said, "because of so many shor : Mo.tcd debentures by which life previous Admin-, isfration raked their money, falling duo, mostly iii London. The amount Is iib#)i.it d! 8,000,000. We have, of course., to raise a certain amount of money for public works, and for tlio lending Departments, and these forts, taken together, acccssi--tato our going on to the. London market for very muck. larger, siims than usual. Our agents advise that the credit <rf the Dominion stands well at present, anil in view of that fait, and seeing that thero is an appreciable drop in tho price of money it Home, it is understood. that thefo will' bo Ho difficulty in placing the loan. The greater part. .of the 'amount raised by this loan will l>e required for ordinary development' purposes olid for the vcqinremeuts of the lending Depart' merits. We shall require another loan before the end of the year, which will bo used (» redeem a litfßfi amount of short-dated debentures which are falling due. It may bo added that though the borrowing seems very heavy, the not if - ereaso of indebtedness for the. rear will t»l be abovo the average."

The I'rime Minister went on fo givo liarticularS of tlie shorMatcd loans which hare to be met by Decemlwr 3i, which are as follow: — floated Ijy the Ward Government '(unconverted portion of the fire million loan), December 31, 1910; JH,500,000, floated Ijv the Mackenzie Government, .Tune 7, 1912.

Total. In addition, about is failing due in Australia this year.. The Prime Minister added that considerable sums arc- failing dviu in New Zealand, but the Government anticipates so difficulty in dealing with debentures which tree loyally held. Ho went oil to pote, by way of comparison, Australasian 4 per cent, loans which have been i-aised during the past j'ciit or so:-' -Victoria, June, 1913, 43,000,-000, at 98, South Australia, July, 1913, <£I,WH),OO(j, at X 97. A „ Now South. Wales, August, 1913, j!l,sfiO s OOO, at 9(1. Victoria, September, 1913, .£2,000,000, at Western Australia, November, 1913., .£1,000,000, at 97.. . r .„ „ n New Zealand) Octabtr, 1913, 9S i- • New South Wales, January, J914-, „C3,f}00,000, nt 58. „„„ , Victoria, January, 1914, ,000 4 000 at