LATEST CABLE NEWS N.Z. LOAN.

Hokitika Guardian, 16 May 1925, Page 3

LATEST CABLE NEWS

N.Z. LOAN.

Australian and n.z. caulk association LONDON, .May 11. Dealings began in tin- New Zealand loan at one and a hall’ per centum discount, the underwriters being saddled with So per centum. C.W’SE OK NOX-KITCESS. LONDON, May LA. The Now Zealand authorities altrihtlt the nnii-sueress ot the loan to the effects of the reintroduetion <.f the gold standard and apnrehensiini in coin ■ nection with the increased hank rate. ERIA.’E .MINISTER'S STATK.M ENT. WELLINGTON. .Mae IT

The Prime .Minister, Sir Francis Roll, who was acting for the late Kin-, mice .Minister, lit. Mon. W. K. .Massey, when the New Zealand -I J- jier c<-nt. loan was put on the London market, was interviewed by a ‘'Times” representative to-day for his opinion with regard to the comparative failure of the loan, as indicated hv the London

cable messages. "W have no further information and no further figures,” stated Sir Francis Roll, "than those which appear in the cables. They show that the underwriters have to shoulder some .‘id pier cent, ol the loan. I think, however, it is quite possible that if .Mr Massey, whose linaneial ability was recognised, had lived, it might have made a difference. I don't think that the reintroduetion of the gold standard, in itself, would j abort the position at all; hut the Rank of England has raised the hank rate to prevent the export of cold from the Old Country, The effect of that is that borrowed money can only he borrowed to go into a colonial loan at d per cent, f hough issued at LTM 10s, the raising o! the Rank rate has affected the amount, of money available to put into the New Zealand loan. The Rank having raised to live per cent the rate for money pi put into such loans, has made it extremely difficult to raise money te, out into the loan at 1.1 per cent,, even at CD-I Ills. There is absolutely no reason, however, to suppose that New Zealand’s credit stands any lower than before - absolutely no rea-

Asked why the loan had been placet on the market at the present time, Sii I‘rancis Roll said: "I don’t know ’ton must lorm your own conclusions.’ “It would appear to he fortunate I'm New Zealand.” he added, " that wc cot in first.