LOAN OF £2,000,000.

Taihape Daily Times, Volume XI, Issue 3507, 19 June 1920, Page 2

LOAN OF £2,000,000.

! MONEY FOE PUBLIC WORKS. i TEX YEARS AT 5 PER CENT. QUESTION OF COMPULSION. The prospectus lias been issued of a loan of £2,000,000 for public works. The loan will be for ten years at 5 per cent. — without freedom from income tax —and the price of issue is par. The loan is authorised to be raised under section 5 of the Finance Act, 1910 (public works), the Railways Improvement Authorisation Act, .1914, and the Electric Power Works Loan Act, 1919. According to the prospectus it "will be utilised for public works only, including railway improvements ami hydro-electric purposes." In reference to the issue of this loan the Prime Minister was asked in Wellington whether the Government's powers of compulsory borrowing would be He replied that this matter had not been fully considered, and it was not possible to speak definitely when the financial situation was changing from day to day, but he indicated that compulsory powers, if used at all. should be used with the greatest care. His inclination, as he had indicated on a previous occasion, was to cease using the compulsory powers. He believed that compulsion would not be necessary. More than half the amount of the £2,000,000 Public Works Loan issued in 1915 will mature on December L"5. Mr Massey slated that a definite decision had not yet been made as to rh* method of renewal. It was proposed, however, that the holders should be allowed to renew on. the same terms — \l pr cent., free of income tax —or to convex 1 ': into the new loan at 5 per cent, without freedom from taxation. He anticipated no difficulty in regard to the renewal.