The Chronicle LEVIN. SATURDAY, AUGUST 19, 1916. THE £8,000,000 NEW ZEALAND WAR LOAN.

Horowhenua Chronicle, 19 August 1916, Page 2

The Chronicle LEVIN. SATURDAY, AUGUST 19, 1916. THE £8,000,000 NEW ZEALAND WAR LOAN.

Firstly lot' patriotic reason*, tin* War Loan now being raided in New Zealand lo: financing this dominion's share a iiu> great «ill- i-!ioii]<l nu'i't with hearty support from all cla.ses of the community. Secondly, there should bo .10 hesitation about supporting it 011 tin; ground of its intrinsic merit as a yiiiedjicd .security. No loan ottered '11 New Zealand prior to this 011 c iias piv->osM'd so many features deserving ol commendation 011 the score of .soundness. A iState-guaranted loan, bearing interest at U per centum. and governed liy the New Zealand Public l>ebt Extinction Act which automatically huild.s up a sinking fund for the extinction of all loans within a period of seventy-five years, obviously must 'increase in value as the years go hy. Quite apart from this is tlio fact that the currency of the loan ifi for a much shorter period than seventy-five years. At investors' option, the moneys lent may Have "redemption dates set down at either fourteen years or twenty-five: and in the case of sums under CSO the period is fixed at five years. T>ue to war conditions in the main, Xew Zealand. liav a plethora of money at the present time: and due to war conditions, also, the Xew Zealand Government "ill be beset with a plethora oi needs for money for years to come. That money must be raised; and il the response to the appeal for a substantial loan should not sitilice for present needs, the uvxi recourse will be to direct taxation. We have 110 fear that any necessity ior this alternative will be allowed* to arise, but the tact that .such an alternative is possible must he recognised by all who view the matter of the loan from a remote perspective. Summarised in a phrase. the loan affords the present generation of New Zealand taxpayers an opportunity to lend money at a profitable rate of investment instead '' I being compelled to part permanently with it at the behest of the Commissioner of Taxes.