THIS LONDON LOAN.

Kaipara and Waitemata Echo, 4 February 1914, Page 2

THIS LONDON LOAN.

Ti-ik issue of a loan at four per cent at 100 and a half is a new thing and a good thing. It shows that we are at last bent on having the true value of our securities gilt edged as they are adequately recognised. That the currency is not more than ten. years is a sign that the government has abandoned the idea that it is always necessary to get their money at long dates. In this respect the Liberal policy was better and the improving money market proves it quite strongly. The theory of Sir Joseph Ward is therefore sound that in a country of enormous trade vastly profitable there must in the main be vast accumulations of profit seeking profitable investment, their owners thanking their stars that there are oversea dominions able and willing to use their moneys for them at a profit to themselves. The loan of last year was really a counsel of despair, begotten of the idea that it Avas impossible for money ever to be cheap- again. But this loan, the second Massey venture, recognises that the periods of dear money are the periods for bending to the stem by paying the high rates for a time, trusting for lower money later against the maturity period. After this then we hope the way will be

clear for enforcing the' rule that loans must be outside party politics.