The Daily News. SATURDAY, APRIL 6, 1901. THE HALF MILLION LOAN.

Taranaki Daily News, Volume XXXXIII, Issue 68, 6 April 1901, Page 3

The Daily News. SATURDAY, APRIL 6, 1901. THE HALF MILLION LOAN.

The notification on the part of the Government of tboir ietention to raise half the million loan authorised under " The Aid te Public Works and Land Settlement Act, 1900," is of considerable importance. It is a step which should commend itself to everyone. Mr- Ward lately stated that there was sufficient money available in the various institutions in the colony, to r?\\y ob the business of the colony without appealing to outside capitalists. The action now taken will afford a favourable opportunity for those hiving money to invest to de so in a manner that will show the extent of the resources of the colony. An attempt was made en a previous occasion to float a loan locally, but for various reasons it was not a success. Money was not then so plentiful, and the interest offered by the Government was one-half per cent, less then on this occasion. Four per cent, interest with a gilt-edged security is an iavestmest that should tempt many people on. the loek out for a profitably good and safe depository for their surplus cash. The currency of the debentures seems to be all too short, and instead of only three years a currency of njne or twelve years would have been preferable, Doubtless, however, the Treasury is well advised in taking the couree they have followed. Of the possibility of raising the money in the colony, speaking in Wellington a few days ago, the Hon, Mr. Ward said:—" Savings Bank business shewed a marked increase. The sum of .£4,170,000 was deposited, as against .£3,645,000 the previous year. The sum of £3,827,000 was withdraws, as against £3,470,000 the former year. The total sum at the credit of depositors on 31st December last was £5,809,552. as compared with £5,320,321 the previous year—an addition of £439,000. to the balani es at credit of 197,408 depositors." There wi!S little doubt, in view ef these large sum in the Savings Bank, but that the half-million loan would ba successfully floated in the colony. The advantage of floating the loan in the colony in- ! stead ef at Home, keeping the interest here instead of sending it out of the colony is very great. There is another advantage, the N.Z. Times points out, which tha colony is certain to reap, wherever the money comes from. " The cost of raising the Join here is practically nil; while the cost of raising it in London would be not less than two per cent. The difference at once reduces the loan from a four per cent, almost to a three and a quarter footing. But I that is not all, for a three per cent, lean in London would have coßt the two per cent, all the same, and the price, in the present state of the market, would be seriously less than par! The issue of a fear per cent, loan at par in this country on a three and a quarter basis is, without doubt, good finance. If it commands a promium as well, the advantage will, of course, be all the greater; but that result will not make the finance any sounder. Australian Governments have lately done well with local issues, bearing substantially less than four per cent.; but there is little reason to believe that .they secured that special local advantage whjqh the New Zealand policy is seeking by of the higher interest rate." Full particulars pf the loan ara to be found in another part ef this issue and there are doubtless many in Taranaki who will gladly avail themselves of this opportunity.