IMPORTANT BOND ISSUE.

Taranaki Daily News, 22 April 1921, Page 7

IMPORTANT BOND ISSUE.

GILT-EDGED 7y 2 P.C, INVESTMENT. FINANCIAL AID FOR FARMERS. In this issue appears an announcement concerning an important move by the N.Z. Farmers’ Co-operative AssocL ation of Canterbury, Ltd.—an old established institution with headquarters at Christchurch, fifteen branches throughout Canterbury, Marlborough and Nelson, and Dominion-wide ramifications. In order to provide further financial aid to those farmers who are badly hit by the prevailing stringency in the money market, the association is issuing £250,000 t worth of per cent, bonds in sums of £25, £5O, and £lOO each, repayable in five or ten years at purchaser’s option. In this way is provided an attractive investment in which practically everybody can share and; also a means of securing new capital that will enable urgent relief to be given to the men on the land.

This is a time when, in the national interest, the farming community should be given a helping hand by all who are able to do so. The Dominion’s prosperity depends upon the great primary industries. A little extra ready money 'now, available to the farmers wlp need it most, will be a great stimulus to effort, will buttress confidence and hope. The principal danger at a time like this, is that financial stringency may discourage the individuals affected from .continuing their maximum efforts along lines of development and production. The 'present bond issue has been designed to make a popular appeal—to interest the average householder and small business man, as well as the well-to-do. The bends can be secured in small denominatiens, and the interest rate of per- cent., free of income tax, msikes the investment unusually attractive. They are bear’er bonds, with interest coupons attached, and both the funds and coupons are readily transferable. like banknotes.

The company has been in existence for 39 years, and it has proved remarkably successful. It has paid an average rate of dividend since its inception of slightly over 8A per cerit on its ordinary capital, and its annual volume of business done has reached the stupendous total of £5,501,349. The number of shareholders has grown to almost 12,000. Whilst the bondholder has no specific charge on the assets of the company, a statement has been prepared by Messrs. Newburgh, Best arid Co., the well-known public accountants of Christchurch, showing that the security supporting the issue, as at March 31 last, amounted to ever one and a half millions, made up as follows: —Capital paid up, £877,512; capital uncalled, £424,783; reserve fund and undivided profits used in the /business, £209,423; total, £1,511,718.

Applications for the bonds will be received by the .NZ. Farmers’ Co-operative Association of Canterbury, Ltd., Christchurch, or any of its branches; also by any branch of the company’s bankers, the Bank of New Zealand, or by any member of a Stock Exchange affiliated to the Stock Exchange Association of New Zealand.

Every reader is invited to secure a prospectus, which may be obtained from any of the above addresses.