WELLINGTON NEWS

Hokitika Guardian, 12 June 1928, Page 4

WELLINGTON NEWS

' NEW ZEALAND’S CREDIT. (Special to “ Cuardian.”) WELLINGTON, June 8. That the credit of New Zealand stands high in the London market is evidenced by newspapers references to the cash and conversion loans issued by the Goyenment early last month Thus “ The Financial Times,” the leading financial newspaper in London; in commenting on the loan on May 2nd, when the prospectus' was issued, said: “ A good reception was accorded to the preliminary details of the New Zealand loan. There , are two offers, cash and conversion. The issue, takes the form of 4 per cent inscribed stock due for redemption in November, 1947. The cash portion is of £5,000,000 stock. This is offered at 04i per cent. It thus yields £4 15s 3d per cent, running income, and about £4 19s per cent allowing for redemption at par 191 years hence.

- “In this calculation no. account is taken of the ‘turn’ reckoned in the market at about 10 per cent received by the subscriber through the fact that whereas instalments are spread over until July 20th, a full half-year’s interest will be paid on next November Ist. The new money will be used wholly in productive purposes. New Zealand’s credit stands high, and the old 41 per cent are quoted above the new now obtainable. The Dominion has registered income surpluses of £30,000,000 since 191 f. These have been applied almost entirely to debt reduction or development of works. Its stocks arc in keen home demand, sinking fund provision is made, and a considerable portion of the amount available for redemption purposes is devoted to purchases on the London market. . “The.con version portion is £5,225,000. This is available in exchange tot £5,000,000 of New Zealand 41 per cent stock due for repayment on November Ist next year. The total of the latter issue is nearly £30,000,000, so that only one-sixth can be converted under the present offer. 'litis is attractive because in exchange tor each £IOO now hold there will be received £lO4 10s nominal of the new 'stock, thereby raising the income on the holding ,to over £4 14s, while fully preserving par cash value of the existing investment at current market prices and adding to redemption value.” On the following day in its market notes, the paper said: “The Hank of England Loans Office was besieged by applicants for the New Zealand prospectus, aiul long before 9 o’clock a long queue had formed up, which extended partly down St. Swithin’s Lane and partly down Gqorgo A aril. When the Hank opened its doors a wild scramble for prospectuses ensued. People liter-: ally fell over one another in their anxiety to obtain the lorms. Some applicants filled up their subscriptions on the spot; others rushed hack to their offices and came hurrying back again hoping that the list would not be shut before they could get their applications accepted. The scene reminded some of us of the extraordinary oxcitemom, that prevailed at the time of the issue of the Burinah Ruby Mines hv Rothschilds—also in St. Swithin’s Lane—when the street was filled with a surging mob.” After the lists closed, “ Ilio I'inancial Times,” in its issue of May 4, said: “New Zealand could have obtained the whole of the £29,000,000 iequired for the conversion operation, and with ease, if she bad wanted to do so, this month. Instead £5,000,000 o', the.new issue was set aside for those who wanted to convert their 1929 stock and there will be dissatisfaction at the subscription lists being dosed so eaily as they were yesterday morning. Ibis gave many trustees lnjt little opportunity for converting into the total amount of £5,000,000 new stock included in the latest offer. “According to the prospectus, the list' of conversion applications was to be closed when £5,000,000 of the 1929 stocks were surrendered. This gave the big holders, insurance companies and others, some slight advantage, of which it is presumed they themselves. The present issue has gone ' through with loss smoothness than the City is accustomed to expect in a colonial issue of this magnitude. •The prospectus did not appear in time to give everyone an equal chance for subscribing to the loan. Ihe Stock Exchange was dosed on Tuesday, and brokers who received instructions from clients to send in applications for the New Zealand loan, getting these instructions on Wednesday, had to do the best they could to place the forms 'in the hands of the Hank by 10.45 a.m. on Wednesday. This in sonic cases ’proved to he a .physical impossibility.”

“How many tobacco pipes’ do you keep in use?” The writer knows a .'man who has 31 and smokes them all, .turn about! llather a lot? But it certainly is a good plan to have a few pipes going instead of smoking the same one continuously. More important still is the tobacco. Bet it bo good, and avoid brands- heavily charged with nicotine. Any doctor will tell you their habitual use is injurious, and it cannot be gain-said that; the" imported brands all contain more nicotine than -can be safely absorbed into the system. The purest tobaccos of all are theTSfew Zealand opes. There’s surprisingly little nicotine in tliqm, which means they can be indulged in with the utmost impunity. Their fine .aroma and exquisite flavour are largely due to the fact that the leaf is toasted in the process of manufacture. these qualities it is that differentiates them from all other to-, •bam®. n Xou can get them in anyt strength. ' Ask your tobacconist for “Itivbrh'e&a Gold” mild, “Navy. Cut”! (Bulldog) medium, or “Cut Plug No. 10” (Bullshead) full flavoured.—Advt.