£8,000,000. THE NEED OF NEW ZEALAND.

Horowhenua Chronicle, 18 August 1916, Page 1

£8,000,000. THE NEED OF NEW ZEALAND.

I'liu prospectus of a. loan oi' eight lllllllOU pollllUs hLCl'llUg is set out ou page -1 ol to-day's issue ol Tlue Chronicle. lliite sum is to bo raised »y a.utiiority ul au Act of Parliament passed ii week or &o ago, aind the proceeds .will be devoted to tile cany ill gou ol Mew Zealand's sliure in tlie war. i'or patriotic.- reasoii6 alone, the people ol tins dominion should ensure a successful result for the Government's appeal; but there remains to be considered the excellent nature of the investment offered. An interest of 4i per cent per annum, free oi' in-come-tax, is offered, anU the money may bo lent, at lenders' options, for either fourteen years or twenty-iive years. The interest will bo payable every half-year (in March and September). 'l'o enable small investors io participate 111 the beneflte the loan offers to in i esters, the Government is prepared to accept subscriptions irom £1 upwards, though 110 bond will tie issued lor a less sum than £50. An annual' sinking fund for extinguishment oi the loam within seventy-live yours will come into operation automatically as provided by the Pubke Debt Extinction Act; so all iu all it results that the loan now in process oi llotatiou will afford public Oodioand private investors alike one of the safest ami most desirable means 01 using spare moneys that ever lias oeeu made available for the people of these parts. An Evening Post reporter who interviewed the „Umister oi finance (Sir Joseph Ward) obtained, some interesting paiticulais concerning the loan. Sir Joseph said that the small investor'.- requ.rements would be "met by the issues ol certificates for £1 or CIO (ju his option); the certificates boi.;g made payable ''to haare! - ," and tlierelore being a negotiable security. Tins? certificates lkay be obtained at any postal money order office in Aew Zealand, and only at such offices. Oil payment oi 10s in cash a certificate ior £1. payable in live years, will be is■sued ; and on payment of £8 a certificate ior £10, payable in five years. All. otiier amounts required can be made up by combination of £1 and £10 certificates—thus for £25, two £10'e, and live £l's will be issued. Applicants wishing to invest more than £o0 .should apply for war bonds, which are issued for larger sums, with coupons attached for the collection of interest half-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 end of fire years includes compound interest at 4J per cent, nil the purchase price. The certificates will be payable to boarer, 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 small investor, is the arrangement that a- £] certificate will uot cost £1,. but 16s, and the £10 certificate only £8, its actual face value only being realisable a,t the termination of the five-year period.