PUBLIC WORKS LOAN

New Zealand Times, Volume XLVI, Issue 10615, 14 June 1920, Page 4

PUBLIC WORKS LOAN

£2,000,000 RAISED LOCALLY. TO BE RENEWED SHORTLY. A definite decision had n6t vet been made, stated the Prime Minister on Saturday, in regard to the method of renewing the Public Works loan of £2,000,000, floated in Hew Zealand in 1915, which will mature within the next few months. It was proposed, however, that the holders should ha allowed to renew on the same terms—' ‘ll per cent, free of income tax —or to convert into the now loan at 5 pea cent, without freedom from taxation. Ho anticipated ho difficulty in regard to the renewal. £10,000,000 LOAN. WILL COMPULSION BE USED? In reply to a question, Mr Massey stated that Cabinet had not yet fully considered the point, whether the Government’s compulsory borrowing powers would bo exercised in. connection with the ten million loan" he recently foreshadowed. It was not possible, ho added, to speak definitely 'when tho financial situation wa.s changing from day to day, but ho indicated that compulsory powers if used at all should be used with the greatest-care. His inclination ns he had indicated on a previous occasion was to cease using the compulsory powers. Ho believed that compulsion would not bo necessary.