IMPORTANT BOND ISSUE.

Ashburton Guardian, Volume XLI, Issue 9497, 22 April 1921, Page 2

IMPORTANT BOND ISSUE.

GILT-EDGED 7£ p.C INVESTMENT. FINANCIAL AID FOR FARMERS. In this issue appears an announce*ment concerning an important, move by ! the N.Z. Farmers' Co-operative Association of Canterbury, Ltd. — an oldestablished institution with headquarters at Christchurch, 15 branches throughout Canterbury, Marlborpugh, and JNelsoUj and Dominion- wide raniifij cations. . . i In order to provide further financial i aid to those farmers who are badly hit ■by the preyailing stringency m the money market, the association is issuing £250,000. worth of 1\ per cent, bonds m sums of £25, £50, and £100 each, repayable m five or ten years at purchaser's option. In this way is provided an attractive investment m 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, m 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 who 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 £he individuals affected i from continuing their maximum efforts j along lines of development and pro*duction. i The present bond issue , has been : designed to make a popular appeal — i ■ to interest the average householder and : small business many as well as the well-to-do. The bonds can be secured m small denominations, and the interest rate of 1\ per cent., free of income -i tax, makes the investment unusually i attractive. They l are bearer bonds, with interest coupons attached, and : both the funds and coupons are readily - transferable, like bank-notes. The company has been m 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 cent, on its ordinary capital, ""and its annual volume of business done has reached the stupendous total of £5,501,349. The number ' of shareholders lias 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, Bost and Co., the wellknown public accountants -6f Christchurch, showing tjiat the security supporting the issue, as at March 31 last, .amounted to over one and a-half millions, made m; as follow : — Capital paid up, £877,512; capital uncalled, £424,783 ; reserve fund and undivided profits used m the business, £209,423; total, £1,511,718. The future of the Dominion is wrapped up m the progress of the primary industries, which have for so many years enjoyed wonderful pro-

sperity. During the seven years 1914-1920 the exports from New Zealand amounted to forty-three and a-half millions m excess of the country's imports during that period. Unfortunately, during the past twelve months, the Dominion has received practically two years' imports, which, combined with the present temporary decline -m values of our staple products, has created a temporary 'depression. The future of the farming industries is sure, sound, and solid when the situation is carefully analysed. Applications for the bonds will be received by the N.Z. Farmers' Cooperative 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. Applications will be dealt with m order of their receipt, and m the case of being over-subscribed, the directors reserve tlie right to make pro ratn allotment^ Every reader is invited to secure a prospectus, which may be obtained from any of the above addresses. lx