CORRESPONDENCE. DOMINION FINANCE

Stratford Evening Post, Volume XXXVI, Issue 7, 13 May 1913, Page 5

CORRESPONDENCE.

DOMINION FINANCE

[To The Editor Stratford Post.] gi r> The three million loan dates from Ist February, 1913. The dates of payment of the money by the subscribers are as follow:—5 per cent, on the 18th and TO per cent, on the 28th February, 15 per cent, on 9th April. 15 per cent, on 9th May, 25 per cent, on 9th June, and 28 per cent, on 9ti July. Six months’ interest, viz, £60,000 is payable on Ist August next The loan was secured at 2 per cent discount, representing a loss of £60,000. Underwriters’ commission if tfaid to be 2.per cent.—another £60,000. The interest accrued to sub scribers upon portions qf the lon’ whilst still in their pockets accordin to the foregoing dates is approxiir:..-

ly £1 4s 6d per cent.’, i.©., £36,750 The details of numerous minor charge; have not been given to the public although necessarily known to th; Treasury, and easily ascertainable (In the public) (in “globo”). . Excluding these, the charges upon this loan whic 1 co.no to account duringthe first si; months of its life will total £216, ioi hr £7 4s 6d per cent. During the remainder of the term, the interest charge is of course 4 per cent. It hat been the custom of this and formei Governments to spread these expenses over the period for which the loan was raised—an inaccurate presentment of the position. This transaction haf been termed a financial coup, a wholh legitimate use of that phrase in it; ipplication to the interests not of the borrowers but of the lenders.—l am etc., VIGILANT. .Whangamomona, 12th May, 1913.