£8,000,000, THE NEED OF NEW ZEALAND.

Horowhenua Chronicle, 16 August 1916, Page 1

£8,000,000, THE NEED OF NEW ZEALAND.

i'jio prospectus oi : a ioan of eignt million pounds sierliuj£ is set out on page 4 01 to-day's issue ol Tiire Chronicle. This sum is to bo mused oy authority of an Act of Parliament parsed a week or so ago, and the proceeds will be devoted to the carryingon oi JN'evv Zealand's share in tlie war. I'or patriotic reasons alone, the peoi pie 'of this dominion should ensure a successful result for the Government's appeal; but tliero remains to be considered the excellent nature oi the investment offered. An interest of 4J per cent per annum, free of in-come-tax, is offered, juid the money may be lent, at lenders' options, for cither fourteen years or twenty-five years. The interest will be payable every half-year (in -March and hep Lumber). To enable small investors to participate 'in the benefits the loan offers to investors, the Government is I prepared, to accept subscriptions irom [ I'l upwards, though no bo>nd will Ue j issued tor a less sum than £S(J. An , annual sinking fund for cxtinguishment of the loan within feeventy-hve years will come into operation autoi matjciilly as provided by the Public I Debt Extinction Act; so all in all it I results that the loan now in process i of llotation will afford public bodies and private investors alike one of the safest and most desirable means 01 using spare moneys that ever has oecn made available for the people of these parts. An Evening Post reporter who interviewed the Minister of Finance ' (Sir Joseph Ward) obtained, some interesting particuluis concerning the loan. Sir Joseph said that the sinali investor's requirements would be met bv the issues of certificates for £1. or £10 (at, his option); the certificates bvi:::g made payable "to bearer," and therefore being a negotiable security These certificates may be obtained at any postal money order office in Aew Zealand,, and only at such offices. O,; payment of 16s in cash a certificate 101 £1. payable in five years, will be issued ; and on payment of £8 a certificate for £10, payable in five years. All other amounts required oau -be made up by combination of £1 and £1C certificates—thus for £25, two £10'b, and live £l's will be issued. Applicants wishing to invest more than £51 should apply for war bonds, which are issued for larger sums, with coupons attached for the collection of interest half-yearly; see special circular. I'iie war loam certificates are for the small investor. He receives the same interest as the large investor, and the amount payable at the end of five years includes compound interest at ii per cent, ou the purchase price. The certificates will be payable to bearer, and can, therefore, be sold, or transferred from one person to another. The most attractive feature in the issue of the certificates, and one that will appeal particularly to the email investor, is the arrangement that a £1 certificate will not cost £1, but 16s, and the £10 certificate only £8, ite actual face value only being realisable ait the termination of the five-year period.