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Hokitika Guardian, 12 May 1928, Page 2

Tun flotation of the New Zealand live million loan is being acclaimed as a great and unqualified success. It was in point of fact .subscribed seven times over—a total of £35,000,000 being offered—-and the applicants thus get only 14 per cent, of the amounts they offered to take. What makes this success oven more remarkable is the reduction of the rate from 5 to It per emit. New Zealand four and a-half per cents floated at 94 J are already quoted at a premium, and the Dominion could desire no more satisfactory proof of the high position that its credit now holds on the London money market, ft is true that there seems to he a great deal of money available lor good openings in the City, as industrial investments are reported to he active. At the same time it is most encouraging to find this loan so heavily over-siihserihcd, and to know that if our Government had attempted to raise the whole sum of £29,000,00!> required for conversion purposes it could have got the money all at once. But quite apart from our public credit, it is satisfactory to learn that the stringency in the money market at Hume is abating, and that tliis improved condition of affairs should scon he retlected on this side of the world, as well. The position of our neighbours in the Commonwealth with regard to public harrowing gives emphasis to Now Zealand’s standing on the London market. In the < nurse of a recent political speech the Commonwealth Treasurer. Dr Page, mentioned in discussing the Commonwealth's financial agreement with the States that a most important aspect of borrowing was the standard of Australia’s credit in the overseas market. He pointed out. that New Zealand and Smith Africa were able to borrow on appreciably better terms than the Australian Government, and one of the main objects of the newly-constituted Loan Council would he to enhance the credit of Australia in the overseas market. TTo went on to say that with proper management of debt transactions, with sound sinking funds as provided for hv the agreement, and with the elimination of competition, it was confidently expected that the Loan Council would bring about large savings to the general community. The total debt «jf Australia now amounts to about £l",01(1,00'.),000. The annual interest, bill i-. £53.000,000, or about three-quarters of the total revenue received from taxation. If the credit of Australia were as good as that of New Zealand, and it were possible to convert all the Commonwealth debts-, Australia should he aide to save 3s per cent, per annum in interest, which would mean an annual saving of £1,500.000 in interest alone on existing debts.