TWO MILLION LOAN

Hokitika Guardian, 4 June 1920, Page 4

TWO MILLION LOAN

FOR. PUBLIC WORKS

(Per Press Association.)

WELLINGTON, June 2

The Government is making arrangements, stated Mr Massey to-night, to give investors an opportunity of taking up New Zealand debentures at 5 per cent at par for a term of ten years. This new loan, he said, will take the form either of iusciibed stock or bearer bonds at the option of tlqo subscriber. Nominally this is a loan of £2,000,000, and the money is required lor public works; the loin is also intended lor the purpose of encouraging national thiift and of encouraging New Zealand people to use their funds for the development of their own country.” “ This sum of £2,000,000,” ho added- “ is not all that we shall require during the present year, as it is practically certain that another loan, of a considerably larger amount, will be placed locally in five or six months’ time. It may be noted that interest is at tlie rate of 5 per cent, whereas the rate on all war loans was 4) per cent. On the other hand, thie interest on this loan is net hep el income tax. The security is undeniable. 1 hope that a considerable amount will he subscribed. Applications.for amounts from £SO upwards will be accepted. Banks and registered sharebrokers are to be allowed a commission at the rate of 5s per £IOO.