GOVERNMENT STOCK

Press, Volume LXXIX, Issue 24074, 9 October 1943, Page 4

GOVERNMENT STOCK

“OVER THE COUNTER” ISSUE ANNOUNCED

(P.A.) WELLINGTON, October 8. The •’Minister' of Finance (the Hon. W. Nash) announced to-night _ ,the opening of an “over the counter” issue of New Zealand Government stock. Mr Nash said it would be remembered that the gap to be bridged, as indicated in the Budget, was £50,000,000, of which it was estimated £10,000,000 would come from departmental funds and £40,000,000 would have to be raised by public loans. The Third Liberty Loan for £35,000,000 was to provide the bulk of this, leaving £5,000,000 to be obtained later in the year by “over the counter” sales of St Actually the loan was " over-sub-scribed by more than £4,000,000, but this surplus was applied in reduction of the amount owing to the British Government under the Memorandum of Security agreement. We were thus in the position envisaged in the Budget estimate of requiring a further £5,000,000 from public issue to finance the war programme, and stock for this issue was now on sale. This stock will.be the same as for the Third Liberty Loan. 2£ per cent., maturing June 15. 1947-49, and 3 per cent., maturing December 15, 1953-56. It will be on sale at all the trading banks hnd postal money order offices throughout the Dominion. Interest on both classes of stock will be payable half-yearly. Mr Nash said the decision to have only one loan for war purposes during the present financial year meant that for a considerable portion of the year there would be no adequate avenue of investment in Government-war loans. "Over the counter” issue would ensure that these moneys would find immediate investment. The cash as received would'be paid into the War Expenses Account and used for war purposes or for repaying advances from .the British Government under the Memorandum of Security.