MATURING LOANS.

Auckland Star, Volume LXIII, Issue 262, 4 November 1932, Page 3

MATURING LOANS.

LOCAL DEBENTURE ISSUE, QUESTION OF INTEREST. REFERENCES IN HOUSE. (By Telegraph. — Parliamentary Reporter.) WELLINGTON, this (lay. The purpose of the present debenture issue in New Zealand was indicated by the Prime Minister, Rt. Hon. G. W. Forbes, in the House yesterday, when replying to a question by the Hon. A. D. McLeod (Coalition Reform, Wairarapa). Mr. McLeod asked whether it was correct, as reported in the cablegrams, that the Australian banks had arranged to lend the Commonwealth Government £8,000,000 at 3J per cent, and whether tho New Zealand Government was borrowing within the Dominion at present a considerable amount of money at 5 per cent for a period very similar to that 6f Australia. The member inquired whether the present internal borrowings were for any special purpose, and the higher rate of exchange against sterling was having an effect in Australia in regard to lower borrowing rates. Replying, the Prime Minister said the Government had no further information concerning tho Australian loan than appeared in the Press. The New Zealand Government was ■ borrowing at present in New Zealand at 5 per cent with currency to September 1, 1937. The currency was being altered to June 15, 1940, as from November 7. The proceeds of these issues were for the redemption of maturing loans. "It is not considered," tho Prime Minister added, "that the exchange rate has anything to do with the rate of interest."