SIR JUSEPA WARD

Hokitika Guardian, 20 January 1922, Page 4

SIR JUSEPA WARD

THE SOUTHLAND LOAN. HOW IT WAS RAISED. [liy TEI4SOKAMI —PER PRESS ASSOCIATION] INVERCARGILL/ January 19. Speaking at a luncheon tendered him by the local bodies here to-day, Sir Joseph Ward referred to the southland Rower Board Loan. Since his return, he said., his attention had been directed fo a statement made by the Prime Minister, in reply to a question by Mr J. R. Hamilton (M.P. for Awarua). The Premier had said he first heard of the proposal to raise money in London for the development of the hydroelectric power in Southland about two years ago. Mr Massey had said lie was in London at the time, but was not asked to take any action in the matter An attempt was made at that time to place a loan upon the London market, and the attempt, lie (Massey) was informed was a failure. He did not know that officially.

Sir Joseph said lie wished to say that the Prime Minister’s statement was not correct. Whoever had informed the Prime Minister was either eompetely ignorant of what had occurred or had entirely misled him as to the arrangements to raise a loan in 1919. The Southland Power Board had entrusted the matter to him, and a short time after he arrived in London he arra,ngpd for 1 filie whole amount £1,000,000, which the Board asked for at that time. Thc arranging to under write the million then, and without any Government guarantee, was not a failure, but a complete success. There was ail unfortunate fact that the Board could not legally take it, but this did not in the least affect the successful and complete arrangement made in London by him of what the Board had asked him, at that time, to do. He got tho consent of the Chancellor of the Exchequer to raise a loan for £l- - provided that all the machinery and appliances were purchased in Britain. The Rower Board had agreed to this. The interest was 0] per cent., the loan being issued to the public at 95. The expenses of issue and underwriting were 2] per cent., the loan to he completed in fourteen days. Regarding the flotation of the £150,000 loan last year, he had held the Board’s power of attorney, and took the matter in hand. After his arrival in England, tho Board had informed him that they held an official letter advising that the Government had undertaken to guarantee a loan. He strongly recommended the Board not to attempt to go upon the London money market until the Bank of England reduced the rate of interest and he had also recommended that they wait until after the coal strike was over. The Board agreed, and everything was got in readiness to put the loan on the market when the bank rate was reduced. Ultimately, he gave directions for the loan to be proceeded with.

In reply to the Prime Minister, Sir Joseph said the loan was not advertised as a New Zealand Government loan, but as a. Southland Electric Power Board Loan, guaranteed by the New Zealand Government. It did not, because of any guarantee, become a Government loan.

Cakes to make—scones to bake—how easy, pleasant and sure is the work when you use SHARLAND’S Baking Powder