NEW LOAN.

Taranaki Daily News, 22 April 1922, Page 5

NEW LOAN.

FLOATED IN LONDON, FIVE PER CENT. INTEREST. ISSUED AT PAR. By Telegraph.—Press Assn.—Copyright. London, April 20. The New Zealand £5,000,000 loan at 5 per cent., issued at par, has been underwritten. The loan is repayable in 1935-45. Its underwriting caused a general firmness in gilt-edged securities, especially in colonials.

PREMIER GRATIFIED. COMPARISON WITH AUSTRALIA. USES FOR THE MONEY. By Telegraph.—Press Association. Wellington, Last Night. Interviewed to-day regarding the cabled announcement of the loan, the Prime Minister said: “Naturally I am gratified at the result so far as it has gone. The fact that a New Zealand five-per-cent, loan of £5,000,000 has been underwritten at par is splendid testimony to the high financial standing of this Dominion, and, I think I am entitled to add, an appreciation of the steps taken by the New Zealand Government to cope with the post-war financial stringency through which the whole world is passing. “The result of the arrangement agreed to is a considerable gain, both as regards the amount of actual cash receipts and in the reduced annual charges. For instance, three weeks ago the last Commonwealth loan, also for £5,000,000, was announced at five per cent, at 96, which means that our loan for the same amount at the same rate of interest will return us £200,000 more in cash than will the Commonwealth loan to the people of Australia. The Commonwealth 6 per cent, loan in January was issued at 97. It is reasonable to assume, according to comparison with that loan, that the actual gain in cash will be £150,000, while the annual charge has been reduced by £50,000, which, if multiplied by the number of years’ currency, represents a very big saving.” The loan is made repayable in 1935 or 1945 —roughly a currency of thirteen years if redemption is made at the earlier date. The authority for the loan is the Aid to Public Works and Land Settlement Act of last session. No definite allocation of the money yet can be given, but roughly the money will be devoted mainly to public works, roads, bridges, railways, electric power works, land settlement and general development purposes.

WELLINGTON DEBENTURES. AMAZING RUSH SCENES. Bj- Telegraph.—Press Assn.—Copyright. London, April 20. The City of Wellington loan of £600,000 was over-subscribed within ten minutes of the opening. It was subscribed twelve times. A queue of some hundreds had been waiting outside the Union Bank of Australia for the prospectuses, and were greatly incensed when told the list had closed. Crowds waited hours for the opening of the issue, and attempted to force the bank doors. An ugly situation was threatened till the police restored order. The crowd complained that only those inside were able to secure prospectuses.