LOAN FOR NEW ZEALAND

Otago Witness, Issue 4030, 9 June 1931, Page 47

LOAN FOR NEW ZEALAND

BOND ISSUE IN LONDON TO BE OFFERED ON MONDAY. LONDON, June 4. New Zealand on Monday will offer a £5,000,000 loan at 5 per cent. The subscription is payable to the Bank of England on July 16, 1934, but New Zealand has the right to repay the whole or part of the loan after July 16, 1932, at three months’ notice. AN ATTRACTIVE INVESTMENT. LONDON, June 4. The Daily Telegraph’s financial editor is of the opinion that the credit reputation of New Zealand is always deservedly high. The bonds therefore are an attractive investment, yielding £5 7s 6d per cent, in the event of redemption at the latest date. It is understood that £4,000,000 of the proceeds will be applied to productive works. MORNING POST COMMENT. LONDON, June 5. The Morning Post says: “The New Zealand issue, in view of her sound conduct of her financial affairs in the present crisis, should be a popular security with both large and small investors. The underwriting is expected to be arranged to-day.”

STATEMENT BY MR FORBES. WELLINGTON, June 5. In reply to a question the Prime Minister (Mr G. W. Forbes) stated today that the New Zealand loan of £5,000,000 by way of 5 per cent, bearer bonds 1932-34 at 99 is being underwritten on the London market. The bonds are repayable at par on July 16, 1934, but the Government will have the option of redeeming the bonds at par in whole or in part on or after July 16, 1932, on giving three months’ notice. Further particulars will be made available after the public subscription lists, which will be opened on June 8, are closed. TRIBUTE FROM LONDON. LONDON, June 6. After reviewing the Melbourne Conference work in an article headed, “ Australia Grasps the Nettle,” the Observer pays a tribute t’o Mr Forbes’s uncompromising ecenomy, in consequence of which, it states, New Zealand is confidently launching a loan on the London market. Australia has only to look to her neighbouring Dominion to see the results of sound finance, with which even the earthquake expenditure has not interfered. The financial editor says: “ The loan will doubtless appeal to banking and other financial institutions, to whom short term bonds are always welcome when offered on favourable terms. Though New Zealand’s exchange rate is momentarily unfavourable her problems are being tackled promptly and on sound lines, and there is little doubt she will overcome her present difficulties once normal conditions are restored.”

-—“ The body of serious crime in Great Britain is greater to-day than it has been during the last 60 years,” said Mr Justice M'Cardie recently.