The Guardian And Evening Star, with which is incorporated the West Coast Times. TUESDAY, JANUARY 15, 1929. THE NEW LOANS.

Hokitika Guardian, 15 January 1929, Page 4

The Guardian And Evening Star, with which is incorporated the West Coast Times. TUESDAY, JANUARY 15, 1929. THE NEW LOANS.

Sni J ns bimi ’’Vahd has Heated his first leans, and on advantageous terms. The seven millions of new capital that are to lie raised in London are at *ll per cent, at !).j .the stock maturing in twenty or thirty years. The return to the investor over the longer period will he £1 10s sd, against JEM l!)s 8d for the loan of last year, which was for the shorter period. Even if additional factors modify the present figure, considers, the Auckland Star, there will he an appreciable saving on the terms of last year's loan. Sir Joseph Ward also decided to make arrangements now to convert half of the twenty-four millions due for conversion next November, and he has obtained terms which return the investor £t 17s or £1 Ids Id. according to the length of the period. Last year’s terms were much the same. It is important to note that these arrangements have been made on a market that shows signs of rising. It is safe to presume that the mysterious communication from London received by the late Minister of Finance just before the election, and referred to during the special session, was a suggestion from the Government’s London advisors that, in view of the probability of interest rates rising during the next twelve months, it would be wise to arrange for a conversion loan soon. Subsequent developments on the London money market suggested that this advice was sound. Mr Downie Stewart’s handling of this business was quite correct, and was acknowledged a.s such by Sir Joseph Ward. It was on Sir Joseph that the responsibility of taking the advice fell, and he appears to have acted wisely in going on the market now. It is interesting to observe that the “New Zealand Herald,” (a Reform advocate) ,after stating that the old Government was pledged to reduction of fresh borrowing and the new one has undertaken to borrow on a larger scale, says that “The London money market has apparently acquiesced in the cliange of policy, and presumably modified or withdrawn its objections to lending money for reinvestment. It has even, apparently, been persuaded to accommodate itself to Sir Joseph ..ard’s prescripiou of the terms on which New Zealand stock should be issued.” ’Hie “Herald” goes on to say that this is less a compliment to the new Government than a tribute to New Zealand’s financial reputation, and the financial record of the Reform Government Be this as it may, the “Herald’s” remarks about the London money market arc worth noting. Sir Joseph Ward has given fresh proof that lie is quite at home in the world of national finance.