£8,000,000.

Horowhenua Chronicle, 14 August 1916, Page 1

£8,000,000.

! I Hi-; NEED Ul<" NEW ZJiALA.XjJ. i. iie prospectus oi a. loan of eight iiH[lion pounds .sterling is .set out .011 page J oi' to-daj is issue of Tlire Chronicle. 'Mlii.s sum is to he raised h\ an thority of an Act oi' Parliament pa.-M 'i a week or .so ago, mid the proceeds will lie devoted to the carryingon ol .New Zealand's share in the war. Eor patriotic reasons alone, the people oi' tliis dominion should ensure a successful result for the Governmeiil'.s appeal; but there remains to lie considered the excellent nature of the investment offered. An interest of 4J per cent per annum, free of in-come-tax, is offered, and the money may be lent, at lenders' options, .for cither fourteen years or twenty-iive years. The interest will lie' payable every hall-year (ii! M arch and September). To enable small investors to participate in the benefits the loan oiTers to investors, the Government is prepared, to accept .subscriptions from £1 upwards, though 110 bond will he issued for a less sum than £50. An annual sinking fund for extinguishment of the loan within seventy-five years will come into operation automatically as provided by the Public Debt Extinction Act; so all in all it results that the loan now in process of flotation will afford public hod.is - and private investors alike one of the safest and most 'desirable means oi using .spare moneys that ever has tieen made available for the people of these parts. An Evening Post reporter who interview."! the Minister of Finance (Sir .)<wph Ward) obtained, some 111le/estiiisr pait.i-u!. .6 concerning the ie :j. Si'.' Jo,; ph said that the small 1 nvc-tor's tvi[ii:reiiients would be mot by tiie issues of certificates for £1." or .I'll) (a 1 his option); the certificates bei::.g made payable ''to bearer," and thcreloie being a negotiable security Tli use certificates may be obtained at any postal money order office in Aow Zealand,, and only at such offices. O , payment ol iG.s in cash a certificate ior £1, payable in five years, will bo issued; and on payment of £8 a certificate for £10, payable in five years. All other amounts required can be made up by combination of £1 and £10 certificates - - thus for £25, two £10'n, and live £l's will be issued. Applicants wishing io invest more than £50 should apply for war bonds, which are issued for larger sums, with coupons attached for the collection of interest , hall-yearly; see special circular. The war loam certificates are for the small investor. He receives the same interest as the. large investor, and the amount payable at the ond of five years includes compound interest at -li per cent. 011' the purchase price. The certificates will ho payable to bearer, and c.ni, therefore, be sold, or transferred from one person to another. The muist attractive feaLure in the issue of the certificates, and 0110 that will appeal particularly to the small investor, is the arrangement that a £1 certificate will not cost £1, but 165,. and the £10 certificate, only £8, its actual face value only being realisable at the termination of the live-year period.