THE NEW ZEALAND LOAN.

Auckland Star, Volume 55, Issue 136, 10 June 1924, Page 4

THE NEW ZEALAND LOAN.

FAVOURABLE COMMENT. -- -■ .rI*'1 *'- - GOOD MANAGEMENT. (From Our Own Correspondent) LONDON, May 5. Underwriting for the 4} per cent New Zcalacd loan now being completed, it is anticipated that it will be very quickly subscribed. The comment made to-day by one well-informed financial authority is that New Zealand is able to borrow on suca,, good terms—the running average yield is f-1 14/9, and total average yield, allowing for redemption, equals £4 .18/1— ■ . because of her good management and finance. The same authority comments favourably on the New Zealand Government's habit, and says that a feature of the prospectus is that it contains much more information about the financial position'of the-country than is.usually given in the prospectusos of colonial^ borrowers. The situation revealed is a sound one. The public debt of the Dominion is. indeed, not ,ight, since it I exceeds £221.000.000, but against it may be set tangible assets of similar value, of . which nearly three-quarters are interestearning in character, as, for instance, railways, telegraphs, advances to settlers, and sinking funds. In connection with the issue, it is recalled that a year ago, on the occasion of the last New-Zealand loan, the attempt was made to establish 4 per cent as the normal rate of colonial borrowing, the issue in question being £4.000,000 of 4 per ccn , redeemable 1933-43, at the price of 92 per cent. But almost two years ago the lirst 4i per cent colonial"loan of the post-war period was offered for subscription. thi3 being a New Sou..i Wales issue «"' £3 per cent offered at 95 per cent, the price of the present '■ New Zealand loan. • Neither issue was particularly successful, put, while the 4i per cent loan has since become a regular feature of the new issue, no further attempt has been made to offer a 4 per cent loan. The present issue yields, allowing for redemption, almost £4 18/ per ;ent, whereas last year's New Zealand 4 per cent issue returned, on the basis of redemption in -» | years, less than £4 12/0 per cent.