RATES OF INTEREST.
NEW government bonj^issue. (To the Editor.) It is announced that a new 5 per cent issue of Government bonds repayable in 1940 and not subject to stamp duty will be open subscription next week. Britain recently converted a huge long-term loan to a 3£ per cent rate, and more recently still raised a substantial loan for a shorter term at 2 per cent. The Australian Government has just completed arrangements for a ten-year loan at 3j per cent. Britain has reduced the rate of interest without legislative interference with contracts, Australia has interfered with contracts but has reduced rates, while to New Zealand is reserved the distinction of interfering with contracts without succeeding in lowering the rate for public borrowings. It is to be hoped that the Central Bank which is to be set up will correct this state of affairs, but no improvement is likely unless its control is divorced from that of the trading banks, which bear so heavy a share of responsibility for the existing high rates. W. A. GRAY.
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Auckland Star, Volume LXIII, Issue 259, 1 November 1932, Page 6
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176RATES OF INTEREST. Auckland Star, Volume LXIII, Issue 259, 1 November 1932, Page 6
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