DEVELOPMENT LOAN

Press, Volume LXXXIX, Issue 27149, 19 September 1953, Page 6

DEVELOPMENT LOAN

£1,270,310 SUBSCRIBED IN FIRST WEEK (New Zealand Press Association) WELLINGTON, September 18. Subscriptions to the second issue of the National Development Loan of £10,000,000 totalled £1,270,310 during the first week. Applications numbered 366. “This is a modest but satisfactory start,” said the Prime Minister (Mr Holland) announcing this tonight. “I think that the subscription rate will subsTantially increase in the next four weeks, before the loan closes. “Let me emphasise again that the Government’s policy is to meet from loan moneys as far as they will permit all the capital costs of the large productive undertakings this country urgently needs, such as hydro works, railways, post office services, land development, and houses.” . To keep the country economically healthy, Mr Holland said, a minimum expenditure of more than £40,000,000 was needed this year on those items alone. A considerable portion of that large sum was already in hand, and the Government was relying on the savings of the people to supply the balance. This was the soundest and safest method of financing expansion and the Government was determined to follow it as far as it was physically possible. "The terms of this loan make it an attractive business proposition, Mr Holland said, "and I feel sure that it will appeal to investors, large and small. “We must continue to develop our resources and build for the future as well as for the present and we must do it as far as we can along the most effective economic lines,” he said. “This will benefit everyone and those who put their savings into the loan will doubly benefit.” Mr Holland appealed to all with money to invest to make the present issue of the loan as successful as the first earlier this year.