THE LOAN.

Taranaki Daily News, 10 November 1915, Page 4

THE LOAN.

A SUCCESSFUL FLOTATION. STATEMENT BY FINANCE MINISTER. Wellington, Yesterday. The flotation of the £2,000,000 loan, applications for which closed on Saturday, was higjily satisfactory, the loan being over-subscribed by approximately a million and a half. In addition to this, holders of nearly half a million of stock in loans maturing this year have applied to convert under the terms of the new loan. One highly satisfactory feature of the flotation is that only £230,070 worth of applications represent transfers from the Post Office Savings Bank. The Finance Minister, in a statement to the Press yesterday, said that the applications amounted to £3,374,743, and there had yet to come to hand from different parts of the country applications bearing Saturday's postmark, which, he thought, would amount to another £IOO,OOO, a total of £3,474,745. In addition, applications for the eonveruion of loans falling due up to the end of November totalled £469,850, and as t/ie right to conversion would continue until the end of November this would probably account for another £IOO,OOO under the heading. Including the £469,850 mentioned, the amount In applications was, therefore, £3,344,51)5, The conversion of the £409,850 indicated that the holders of loans maturing this year were willing to renew their loans on the terms of the new loan. Ho could not say anything about the individual applications, but the transfers from the Post Office Savings Bank amounted to £230,070, which was ,-videncc that there lias been a number of small applications. '"I regard the result as exceedingly satisfactory," said Sir Joseph Ward, "especially as the loan is not for actual war purposes. Had it been for war purposes there would no doubt have boon even many more applications. Tile loan should not appeal to sentiment, but only with the hard, everyday business side of tlie country, and I have no doubt was so regarded by the public. The response should have a thoroughly reassuring effect upon financial ' institutions throughout the country. The loan is largely over-subscribed,' ami the country has fully responded to (lie requirements of the Government. The aggregate sum shows that investors have considerable money to spare outside of their ordinary, every-dny business." Sir Joseph added that the duty of alotting the loan under the Act devolved upon the Comptroller-Oeneral, and could not be completed for a few days, because the rest of the application-' posted to the 1 Treasury would have to he awaited. PRIME MINISTER'S COMMENT. "Very successful and very satisfactory. It places us in a very good position for a considerable time to come " vis the Prime Minister's comment on the loan. In reply to a question, Mr. jiansey Slid that the whole of the two mililoiis would be spent on public works, but it was intended that the money should cover expenditure "for a period o'f more than a year. The Government had deemed it necessary, as a precautionary measure, to cut down public works expenditure during the summer mouths.