BANK RATE REDUCED.

Taranaki Daily News, 1 July 1921, Page 6

BANK RATE REDUCED.

PROSPECTIVE RISE IN VALUE OF u PER CENT. BONDS. (Published by Arrangement.) The announcement in Saturday’s paper that the bank rate in London had been reduced to 6 per cent, is an indication of a more settled outlook in Great Britain, and gives promise of a steady revival in trade. This will be good news for many investors here, as improved conditions in the Old Country, which is still our best market, is bound to have a favorable reaction in this Dominion, and if, as is most likely, the drop in the London rate of interest is followed, later on, by a similar decline in New Zealand, then those who were far-seeing enough to take up 7J per cent, bonds will probably find that their investment has increased considerably in value. The possibility of such an enhancement in value was first pointed out in the Farmers’ Union Trading Company’s bond prospectus, and no doubt this future gain to bond-holders is one reason why this company’s 7| per cent, bonds have been so rapidly subscribed. Of the £lOO,OOO being offered at present by the Trading Company, applications for over £85,000 have already been received, and it is expected that the remaining £15,000 will be fully subscribed within the next few days.

A SPLENDID INVESTMENT. Besides a probable rise in value, many other advantages are offered to investors by these bonds. The interest rate of 7J per cent, per annum, free of income tax is certainly attractive, and being payable every six months, without deduction for exchange, simply on presentation of the appropriation coupon at any branch of the Bank of New Zealand, bondholders will find it easy to draw their interest on the due dates. Bond-holders are protected by the company’s paid-up and uncalled capital amounting to over half a million pounds, and as they also rank in priority to both preference and ordinary sha 'eholders, their investment is amply secured. Another advantage offered by the.-e bonds is that, being nearer securities, they can be easily transferred if the bondholder should find it necessary to do so before the end of the four or eight years for which these bonds are issued.

Everyone interested in this splendid investment should get a prospectus from any branch of the Bank of New Zealand, or from the Farmers’ Union Trading Company, Hobson Street, Auckland. The bonds being in three denominations—£2s, £5O and £loo— the requirements of both small and large investors. As only £15.000 worth are at present available, intending subscribers should lose no time in lodging their applications at the nearest branch of the Bank of Ne.v Zealand, -or at the Trading Company’s head -office. Auckland