THE NEW LOAN.

Auckland Star, Volume LXI, Issue 102, 2 May 1930, Page 6

THE NEW LOAN.

The announcement that a New Zealand loan, of £5,500,000 is being underwritten in London on satisfactory terms is a good indication of the soundness of our financial standing in the Money Market. Floated on 5 per cent stock at 99, the loan will be a little more expensive than the last issue, but considering the financial conditions now prevailing everywhere no serious objection can be taken to this by. any unprejudiced critic. As the "Daily Telegraph" puts it, "New Zealand is always a popular borrower in London," and this is proved by the facility with which we can raise money there. But it would be too much to expect Sir Joseph Ward's political opponents to be satisfied with this flotation; and the "New Zealand Herald" has assailed the Prime Minister in regard to this loan on two distinct charges. In the first place, the Reform organ complains of the "comparative modesty of the amount," and protests that it is quite incompatible with the promise of the United Government to borrow £70,000,000 in ten years. So then, if Sir Joseph Ward proposes to borrow large *ums he is attacked as a reckless spendthrift, and when he cuts down his loans he is charged with breaking his word. The "New Zealand Herald" has certainly reduced political controversy to a very simple and childlike form of criticism. . Next the "New Zealand Herald" complains that portion of the new loan is to be used to pay off Treasury bills floated in London in connection with the last conversion loan. Now Sir Joseph.Ward has explained that these bills were floated "on account of exchange difficulties hindering the remittance of cash from New Zealand." In the opinion of the "Herald" this explanation "lacks conviction." But it omits all reference to Sir J. Ward's statement that the cash which Avas not remitted to London "is at present invested here on fixed deposit." This explanation, of course, entirely disposes of our contemporary's criticism, and no opponent anxious or willing to fight fairly would have ignored it completely. However, the "New Zealand Herald's" readers must be quite accustomed to such "economies of frankness," and we may let it go at that.