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LOANS BY THE STATE.

. .., •-. ~s~ , . MR. MASSEY'S SPEECH. • TELEGRAPHED FIGUBES CORRECTED. - .: Mistakes in telegraphing confused to some extent that portion of the report of' Mr.' Massey's speech, ,tt To Afoiia (published yesterday), which dealt with tiie subject .of State advances. The position was explained by the Hon. Jas. Allen (Minister of Finance) in conversation with'a Dominion reporter yesterday. In the. caso of advances to settlers, the limit upon borrowing (as was correctly stated in the telegraphed report) has'been increased front £750 to £1000. -Tho limit in the case of advances to workers has been raised from £400,' not to £SQO, as tho report stated, but to £450._ This'- tatter sum is the maximum permissible under the State Advances Act. In the case of loans to local authorities, the telegraphed report was entirely misleading. Tho limit has been advanoed;from £2000 to £5000 for any particular work, in tho case of county councils, and a limit of £2600 has been adopted in reference te borrowing by townships and boroughs of small population. "The position is," Mr. Allen stated, "that we fire now , able to meet the reasonable back-blocks demand, and to help some of the others as well." . ° Short-dated Cebßrrtures. Referring to the paragraph dealing with short-dated debentures, Mr. Allen explained, first, ■ that the special difficulty was that tho'eight millions was in the hands of.'the speculator, and not in the hands of the investor; and the speculator would not renew it. "So we have to raise newloansto' pay off this eight millions, with all the consequent costs of underwriting, brokerage charges, stamp duty, etc, and. every time a short-dated loan is •renewed, this . ' 'process'has to be gone aver again; and there 'is where the cost comes in. As to the four and a half million loan, those figures are, right. It'eosfe in tho first instance £144,000, but it was a twoyear loanj and when it became due, after running the course of years, th-o cost occurred again, and this is approximately tlio actual -result: That it will cost probably another £230,000 to £240,000' to put it in the same position as the loan that I raised in London twelve months ago. .The total cost, "therefore, of this four and a half million loan to put.'it in the same position as the loan that was floated a year ago Would be ' apprpximate'ly £380,000) whereas the to-tal'-charges and expenses of•tho•three million loan, which runs for thirty cr fifty/years, were £156,000.- If the four and a'half millions had been three millions, ■ the oxtra cost of raising it as a short-dated loan would be' approximately £100,000," '

Permanent link to this item
Hononga pūmau ki tēnei tūemi

https://paperspast.natlib.govt.nz/newspapers/DOM19140212.2.66

Bibliographic details
Ngā taipitopito pukapuka

Dominion, Volume 7, Issue 1982, 12 February 1914, Page 6

Word count
Tapeke kupu
430

LOANS BY THE STATE. Dominion, Volume 7, Issue 1982, 12 February 1914, Page 6

LOANS BY THE STATE. Dominion, Volume 7, Issue 1982, 12 February 1914, Page 6

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