TWO MILLION LOAN

Southland Times, Issue 18839, 4 June 1920, Page 5

TWO MILLION LOAN

PROSPECTS OF THE ISSUE. cm; istctiurch oitn ion . *.F-jMrcial to the Times). CHRISTCHURCH, .June 3. Local commercial an ! financial authorities are divided in them opinions as to the prospects of success for (he Government's £2.000,000 loan. The weight of opinion, however, favours the probability that little difficulty will he experienced in placing the loan in the dominion.

“The money is in the country all right,” a high banking authority said. “All the hanks have huge deposits, and it is a loan that should be taken up easily.” Of course, he added, most people just now were looking for a higher rate ol interest, hut there were others who had deposits in (he hanks; and the Post Office Savings Bank, and who were prepared to deposit their money for more than two years, who would be attracted by the Government issue, and to whom 5 per cent, interest was more attractive than 4 per cent , the current bank rate for deposits for two years. He thought, that the conditions of the Government loan would prove attractive. Roughly tho banks of the dominion held £50,000,000 of current and free deposits, ami £2,000,000 was comparatively a small amount. The conditions were very favourable to the small man, the man whi was in the habit of saving and putting his money on deposit, and his opinion was that a considerable amount would be taken by Post Office Savings Bank depositors. There would be no dhturbanee of the money market owing to the wide area from which the subscriptions to the loan would come and there would be no interference with industrial developments