WELLINGTON NEWS

Hokitika Guardian, 9 June 1926, Page 1

WELLINGTON NEWS

the NEW. ZEALAND LOAN

(Special to “ Guardian.”)

WELLINGTON, June 7

The New Zealand 5 per cent, loan for £0,000,000 was an unqualified success, and was obviously much favoured by investors for the script has since changed hands at a premium. It is stated in the cable message that the applications totalled £110,000,000, and this suggests that the loan, was “staggod” which is further evidence of the popularity of this issue. Many previous loans have been “staggod” and with a. popular issue it is nearly always a profitable game to play. A stag is an investor who applies for more stock than lie wants or is perhaps prepared to pay for or capable of paving for, and the object of doing this is in the hope of securing a bigger allotment than would otherwise he the case, which could immediately be sold at a profit. It is stated in tlie message that the larger subscribers have been alloted 4 per cent, of tlieii applications. Assuming that a stag lias applied for £IOO,OOO of stock and is allotted 4 per cent, of the amount lie would get £4,000 of stock, and as tho scrip is selling at 11 per cent, premium, or 30s above the issue price be could turn over bis scrip at a profit of £GO. Money very easily made. Unfortunately the London reports do not state, the average prios obtained for the issue, and the inference was that there was no bids at a- premium, or what is the .same tiling, that all tenders wore at- the issue price, which is further evidence that the loan was staggod. .However, whether staggod or otherwise, the loan was a great success, and it was apparently placed on flic market at the right time. The notation would have been in the hands of the Bank of England as that bank are New Zealand’s loan agents in London, and the inscription of the stock is in the books of the Bank of England. The Government here was thus sure of the very best advice respecting the matter, and the results are extremely satisfactory. It is also worthy of note that the prospectus of a New Zealand loan always contains tho very fullest information, and the loans are generally floated in May, so that the accounts for the financial year ended March 31st. can he briefly summarised. The credit of New Zealand stands much higher in London than that of any of the Australian states and oven-of the Commonwealth. Why this should he so. it is difficult to understand, perhaps it is because Labour rules in. Australia, and strikes and lockouts are happening much too frequently. Furthermore, it is . beJloved that the Australian States are overborrowing and squandering the money, which is causing financiers some alarm. Even prominent hankers in the Commonwealth have directed attention to the excessive borrowing by the States and the general extravagance of the community. INCULCATING -THRIFT.

The complaint that children, and school children in particular were being allowed too much pocket money, and were being trained in the art- of extravagance rather than that of thrift "as first raised in Wellington, and it has been fully endorsed by responsible people in other centres. Mere complaints, however, will carry the matter no great distance, what is needed is some definite action that will bring home to parents the urgentneed of teaching children to he thrifty. In Auckland Iho Savings Bank which lias a penny hank department, which lias been lanquishing in recent years, has made a suggestion to Hie Education Board which would get some way towards solving the problems. The scheme is lor the teachers to receive the childrens’ savings, enter same in small passliooks, and for the headmaster to collect tho amounts and hand same over to the bank: withdrawals to ho made by the children at the Bank. Something more than this is required to give the thrift habit a boost. Years ago the Post Office Savings Bank issued cards with 12 spaces for penny stampe. The children affixed the stamps to these cards, and when filled were accepted by the Post Office as a deposit. It seems desirable that some such scheme should. he introduced, or perhaps the Department has a hotter scheme. The country will always need the small savings of the small people for its development. In aggregate those small savings amount to a considerable sum as is shown hv the returns of the Post Office Savings Bank. Wo have vo-,-enllv otsablished Juvenile Courts, then why not Juvenile Penny Banks.