LOAN FOR DOMINION

Manawatu Herald, Volume XLVI, Issue 2731, 10 May 1924, Page 2

LOAN FOR DOMINION

SUCCESSFUL FLOTATION ALLOCATION OF THE MONEY Wellington, May 8. Great success has followed the dotation of the New Zealand Government £5,000,000 loan on the London market, and according to laic.si advices the issue has been over-subscribed nearly four times. The Prime Minister expressed a high degree of pleasure to-day at the reception which the loan has received: “The loan was issued at 05 at 4 A per cent-per annum, for a term of 20 years. It was underwritten for issue on the oth hist., closing on the SLli iuot,” said Mr. Alas.-ey tins afternoon. "I was advised tins morning that the approximate amount applied for was over 10 millions up to yesterday, Inn tiie lists are being kept open until country applications have come in. 1 should not be surprised to lind the loan go to a premium <>r very nearly so within the next few days. As i anticipated some time ago, the rates of interest have hardened, and this loan is costing u- more ihun the 1023 loan. Neverl Keless this loan has been raised on belter terms man tiiose obtained by any other overseas country during the last twelve months, or reaiO since our last loan was placed on tlie market, it is not proposed to compound the stamp duty on this occasion as a saving can be effected thereby. Even if this were included, the rate would be 10/- per cent, not 25/ - as mentioned in a recently published iinaucial article, excluding stamp duty, the estimated charges arc 35/-, thus netting on issue a return of £O3 5/-.