DOMINION LOAN

Waikato Times, Volume 119, Issue 19883, 12 May 1936, Page 8

DOMINION LOAN

LONDON TRANSACTION. ADVERSE MARKET CONDITIONS. lIOXFIDENCE 0F INVESTOBF. .Hy TFlnm‘aph.——Press Assoclanonfl “ELLINGTON, Tuesday. The Mlnlster of Finance, the Hon. W. Nash. has been offlolally edvleed that nppllcatlons tor the converslon of the London loan of £4,000,000 Issued last week amounted to £1,400,000 and that. the cash applicants totalled £1,240,000, leavlng £1,360,000 or about 34 per cent. wlth the underwriters.

.\|l' ,\;i>h recalled that the present ll'ullhm'iinll related to approximately £5,870,1111i or l) per cent. stock raised in London in 1921 with currents) to the Ih~st or August last. the New Zeahunl Government. however. having the right to pay off the stuck un 01' after .\usust 1. W 36. un gluing three Inunlhs‘ nutire. ln exercise of the timL-i-ninenl‘s right, notice of rapay ment us all Augu>l l was given on May 1 and i'ash resouri‘es from New ZeaLunl are being lllillzL‘d lu redeem the unluunl in excess 01' £1,000,000 now being I‘e-tlnanced. The new loan. which is issued at .185, will carry 3 per cent. interest for 19 years. the Government having the right to repay the loan within three years or the final maturity date-

European complications. Commenting on the advice received .\tr Nash said the London authorities had remarked on the satisfactory result. The general uncertainty of the money market consequent on the European political situation and the HaloAbyssinian dil‘tlculty had depressed ell securities amt the underwriting ot' the loan at 98!; at 8 per cent. with a not return 01' zipproximutcly £3 25 showed the CUIIIItICIICB of overseas investors in the standing of the Dominion. The confidence held by the finenelel houses In particular and the Investor In general, said Mr Nash was a remarkable tribute to both the Government and the people. The loan had been underwritten after the passing of the Reserve Bank Amendment Bill and subscriptions had been made during the period of press criticism of the Government‘s policy in regard to marketing. Had the circumstances in Europe been more favoureblo it could reasonably have been raised at the lowest interest rate recorded in the history 01' the Dominion. Governor’s Congratulations. Mr L, Lefeaux, governor of the Reser\e Bank. \\riting to Mr Nash toda). congratulated him on the result of his first loan on the London market. .\ir Lol‘oaux thought .\lr Nash had emery reason to be satisfied in the cirl‘lllll>ifl|l\‘t'\ and in his opinion New Xoalmn’l might “ell regard the issue as a success achimed in spite of adwrse market conditions.