THRIFT LOAN

New Zealand Times, Volume XLVI, Issue 10606, 3 June 1920, Page 5

THRIFT LOAN

£2,000,000 DEBENTURES

TO BE ISSUED FOR PUBLIC WORKS. LARGER LOAN FORESHADOWED. An important announcement with regarj to the issue of a. £2,000,000 public works loan was made by tho Prime Minister, who is also Minister for Finance, to a ‘‘Times” representative yesterday. Mr Massey also foreshadowed the issue .of a considerably larger loan in a few months’ time. “The Government,” stated the Prime Minister, “is making arrangements to give investors an opportunity of taking up New Zealand debentures at 5 per cent, at par for a terra of 10 years. Tho loan will take tho form either of inscribed stock or bearer bonds at the option of the subscriber. Nominally this is a loan of two millions, and the monev is required for public works only. Tho loan is also intended for the of encouraging national thrift and of encouraging Non' Zealand people to use their funds for the development of their own country. This sum of two millions is not all that we shall require during the present year, as it is practically certain that another loan of considerable larger amount will he placed locally in five or six months’ time. It may bo noted that the interest is at the rate of 5 per cent., whereas the rate on all the war loans was 4.j- per cent., but on tho other hand, interest on the new; loan is not free of income tax. The security is undeniable, and I hope that a. considerable amount will he subscribed

“Applications for amounts from £no upwards will he accepted. Banks and registered sharebrokers are to he allowed commission at the rate of §s per £100.” #