POINTS FOR THE PUBLIC

Dominion, Volume 9, Issue 2852, 17 August 1916, Page 6

POINTS FOR THE PUBLIC

OBSCURITIES CLEARED AWAY It is perhaps natural that tho public, or at any rato many people, should not bo quite clear in Tcgard to some salient points in connection with the war loan now bcioro them. Questioned yesterday as to whether there was any confusion in the public mind, tho clerk entrusted with the sale of the scrip at the G.P.O. said that there appeared to be much to explain to inquirers. Ono of the points on which tho public mind was foggiest was that they do not know that tho war certificates and war bonds are two different things altogether, and it was at times a little difficult to make them understand it. "You sec," said tho clerk, "they were both issued on tho same day, and wo deal with both of them here." Tho war certificates, it should bo explained, are purchasable outright for cash at any post office in New Zealand— the £1 certificates for 165., and tho £10 certificates for £8, tho face value to be claimable five years from the date of issue. It will be seen that no interest i 6 payablo during thoso five years—it simply accumulates on tho money paid in until capital and interest represent the faco value of tho certificates. Tho issue of tho war certificates is solely in the hands of the Post and Telegraph Department, and has nothing at all to do witli the Treasury except that the money received from the sale of cortificatcs will he in-

vested by tho Post OfDcc in Government debentures, wbioli security will bo held by the postal authorities. The war bonds are mi entirely different issue, By tho issue of these bonds the Treasury hope to raise £8,000,000, and arc prepared to give 41 per cent, (payable half-yearly at tho Treasury or any branch of tho Bank of New Zealand, or in London or Australia) on investments. The price of issue is par, that is to saj., £1000 worth of bonds will cost the investor exactly £1000, redeemable either in, 14 or 25 years, as tho investor desires. No bond for less than £50 ivill be issued. (On tho otlior hand from one to fifty certificates may be issued to any ono person.) Applications may be made for war bonds to tbe Minister of Finance, through tho post offices or banks, and must be accompanied with 25 per cent, of the money. The second quarter is due on October 2, the third on December 1, and tlio last on February 1, 1917. This should make the difference botween certificates and bonds clear to everyone. A particularly lively business is being done in certificates in Wellington, especially by peoplo withdrawing money from the Savings Bank to invest in tho War Loan. A BIG INVESTMENT. By Telegraph—l'ress Association. Auckland, August 16. Tho New Zealand Insurance Company will take up '£100,000 worth of tho New Zealand war loan. DEMAND IN CHIIISTCHURCH. By Tolegraph—Press Association. Christchurch, August 16. The local demand for participation in the war loan continues good. .. BANKERS'vTEffPOINT (To tho Editor.) Sir, —As many persons may not have had brought home to them the great iiuportanco of tho £8,000,000 issue of the Government War Loan being fully subscribed; and tlie disadvantages which would accrue to everybody in tiio Dominion were it.not so subscribed, we would ask you to be good enough to publish this letter containing briefly our views on the subjcct. On all grounds the success of the loan is to bo desired; those of patriotism and the proper treatment of our soldiers having been well expressed by those in authority, need not be dwelt upon by us, but there are other reasons affecting the people in a more or lees direct manner. It would appear that if tho necessary money be not raised by the loan, it must be got by further heavy taxation, in which all classes must, either directly or indirectly, share; also the credit of the Dominion would suffer, which in many ways would affect the welfare of the people. .

Subscription to the loan does not mean a sacrifice or loss. The investment has never been equalled in New Zealand as a safe and remunerative one, and the return to normal conditions of the money market in a few years would cause it to command a substantial premium. The interest will be distributed in the Dominion, and will be available for investment in, and development of, the country. In about sixteen years tlis interest ,compounded will amount to the original principal, leaving the investment intact.

_ Firmly believing that full subscription of the loan will bo no less beneficial to the individual inhabitants of Now Zealand (with whoso welfare that of the, institution in. which we have tlio honour to represent the ordinary shareholders is bound up) than to the Dominion as part of the Empire, we strongly urge all who have the means idle or within view to apply for as much of tho loan as they can afford. (Signed) MARTIN KENNEDY. W.WATSON. Directors representing the shareholders on the Board of the Bank of New Zealand.