THE WAR LOAN

Dominion, Volume 8, Issue 2298, 31 October 1914, Page 8

THE WAR LOAN

HOW IT WAS OBTAINED. In-the House of Representatives yesterday Sir Joseph Ward.drew attention ; to a Press cable message from London stating that the New Zealand High , Commissioner had formulated a scheme . to secure' the Imperial Government's ~ financial assistance for the' Dominions' during war time, and "that the" scheme si-cured tho ino'ney at a rate not exceeding 4} per cent. ;■ He asked if the statements contained in the message .were correct. ': The Hon. Jas. Allen said the scheme had been started by the New Zealand Government before the High Commissioner or anybody else had formulated 'it. He himself had given instructions to the High Commissioner" to see if we could arrange-with-.'the.lmperial'Gov.-, eminent to guarantee the war loan. The result of the negotiations was successful. In regard to tho. rate of interest, he could, not disclose that, because ho. had been specially asked by tho authorities not to', do so. The cablegram did not state that the rate was 4J- per cent., but' that it was to bb "at a.rate not exceeding 4J- per cent." He. had offered already to show the right hon. gentleman tlie papers in confidence, but he had not availed himself of that opportunity. He regretted that the right lion, gentleman was attempting to make political, capital out of this matter.- He evidently, wished to make the public believe that tho High Commissioner , had started this scheme, ilnd that ho (Mr. Allen) knew nothing about it. ■ He again offered to show Sir Joseph Ward tho file of papers in confidence. '- Sir Joseph.Ward said he.wished only to ascertain if the cablegram was correct. Later in the afternoon Mr. Allen read from the official correspondence and cablegrams in support of the statements he had made. The correspondence showed that it. would have been undesirable to .have floated a loan under tho war conditions prevailing,- and so tho very advantageous. arrangements had been made with 'the Bank of England and the -• Imperial Government. He mentioned that ho had since himself gone to the Leader of the Opposition with the file, and had shown it to him in confidence. Ho hoped the right hon. gentleman- was thoroughly satisfied. .■' ■"'- , Sir Joseph Ward said he had seen the file, and was perfectly satisfied, it seemed to hint that a very satisfateory arrangement had been made and he recognised that at present the Minister iof Finance was not at liberty,'to : disclose the rate, of interest.