TWO MILLION LOAN

Southland Times, Issue 18838, 3 June 1920, Page 5

TWO MILLION LOAN

FUNDS FOR PUBLIC WORKS. ISSUE OF DEBENTURES. (Per United Press Association.) WELLINGTON, June 2. “The Government is making arrangements,” stated Mr Massey to-night, “to give investors an opportunity of taking up New Zealand debentures at 5 per cent, at par for : a term of ten years. The loan will take the ! form either of inscribed stock or bearer bonds at the option of the subscriber. Nominally this is a loan of £2,000,000, and the money is required for public works only. The loan is also intended for the purpose of encouraging national thrift and of encourag- ■ ing New Zealand people to use their funds for the development of their own country. , This sum of £2,000,000 is not all that we ! shall require during the present year, as it is practically certain that another loan of considerably larger amount will be placed locally in live or six months’ time. It may be noted that the interest is at the rate of 5 per cent, whereas the rate on all the war loans was per cent., but on the other hand the interest on this loan is not free of j income tax. The security is undeniable, 1 and I hope that a considerable amount will : be subscribed. Applications for amounts from £SO upwards would be accepted. Banks and registered sharebrokers are to be allowed commission at the rate of os per £IOU.”