In Parliament

Horowhenua Chronicle, 17 October 1913, Page 3

In Parliament

WE STAND ALON K

[per press association.] Wellington, October l(i

Sir Joseph Ward asked the Minister for Finance in Parliament to-day if he could give the House information concerning lhe newspaper cable, announcing the flotation of a New Zealand il.l million loan.

Hon. J. Alk-Ji slated that the cable was quite' correct. The loan was floated to reduce the debentures eomiug' due and for other purposes. Two loans would fall due in .November, aggregating jla If of This amount would be provided for out of (lie loan just raised. Ibe loan v.'as raised.at a discount of £1 10s per cent., with a currency nf ten years, with the right of conversion into I per cent., subscribed stock. The greater portioned' lite loan would be converted this year at 101. Xinely-two per cent, of the loan had taken up by underwriters. A portion of the loan would be u>ed for the purchase of some of the debentures coining due jn •Inly, IIJI4. the amount of which was 4! millions. What could not be raised for purchasing debentures coming due next year would be temporarily invested for the purpose of redeeming other loans coming due. Two were due in 1014 one in January and the ol he )' in December. I )nc was for li millions, the other was the unconverted portion of the 5 million loan. Belore Ihe end of next year the Minister for Finance would need to go on the London marke for something like twelve millions. lie had considered it unwise to ask for twelve millions in one year, therefore he determined to anticipate (he loans coming due in July amounting to -£•'!- 400.000. The balance would be raised next year. That amount did not include the ainouni obtained from the Post Office, but was for 4o millions coming due in July, the loan raised about a year ago. and MJ, million loan which fell due about the end of 101 I. Besides that there was about, alio- i ther million in London and tin 1 annual requirements. Tt would be impossible to give the cost of the loan until the conversion 'ook place. The cost of the last 'i million loan was £4 0s (id.