FOR PUBLIC WORKS

Evening Post, Volume CIX, Issue 101, 1 May 1930, Page 14

FOR PUBLIC WORKS

CABLE MISLEADING

PRIME MINISTER EXPLAINS

In the course of a telephone conversation from Kotorua this afternoon, the Prime Minister and Minister of Finance (the Eight Hon. Sir Joseph Ward) stated that the Press cable to the effect that a New Zealand loan of five and a-half millions sterling at 5 per cent, interest with currency till 1949, is being underwritten in London at £99 per cent., was correct. So far as the terms and purposes of the loan were concerned, Sir Joseph remarked that he would be able to give further particulars later on after the public subscription list had closed. He added, however, that the further statement that part of the loan was required to meet short-term maturing debt was misleading. • - ' ■■, "It. is true," he said,."that parti of the cash proceeds will probably be temporarily used to pay, oil Treasury bills issued in London on account of exchange difficulties hindering the remission of cash from New Zealand, which cash is, at present invested here on fixed deposit. The loan is being raised for. carrying on the public works programme of the Government, and it will bo applied to that purpose within the current financial year." ;