THE NEW ZEALAND LOAN.

Taranaki Daily News, Volume LIV, Issue 300, 15 June 1912, Page 4

THE NEW ZEALAND LOAN.

The reception accorded our latest loaa issue in London is nothing to grow enthusiastic about. The public took but 13 per cent, of the four and a half millions offered, and the underwriters are saddled with the balance. It was not as if the term* were unattraotive, for nothing quite so good, from the investor*' point of view, has ever bee» offered in recent years by the Dominion. Because of this fact, peculiar as it seems, the London market did not like tho issue, if we can believe the London Times, which states that the yield of the loan was so high as to make existing colonial securities look dear. Again, the method of issuing the debentures for the short period of two year* did not commend itself to financiers. It is stated that these debentures, or most of them, will be converted when they are about due, but the principlo is bad, and must seriously affeet oar credit in the future. If the money is wanted, and the Prime Minister says it is, for the purpose of repaying old loans maturing and paying for th« Dreadnought, it would bo better to faae the position and go on the market i» the u»ual way. That the pressat is an inopportune time to approach th» Loadon market for money in small or larg« sums has been abundantly manifested during the past few weeks. Becauje of this fact, the Government probably thought it advisable to issue the shortdated debenture*. But the reception has been tho reverse of what was anticipated.- Why the Government ha» been so mysterious about the issue we cannot understand. All the information tho public has had has been contained in the London press cablegrams. This should not be, for it is a matter that vitally concerns the people of this country, seeing that they are liable for tho money, and therefore they have a right to know what is going on. Of course, there are times in connection with the raising of money when it is inadvisable to publish details, but in this instance there was no necessity for keeping the public in the dark, particularly when the method adopted of raising the money did not commend itself to sound financiers. In matters of this kind it is infinitely better for the Government to take the public fully into its confidence. As it is, an uneasy feeling has heen created, which is not lessened by the comparative failure of the issue. That money is becoming dearer is evident, and this faet will be sure to make itself felt in the Dominion in the near future.

near future. The lesson is that privately and nationally we will have to live less extravagantly than we have been accustomed to.