THE LOAN

Dominion, Volume 9, Issue 2620, 16 November 1915, Page 6

THE LOAN

.PARTICULARS OF ALLOCATIONS NO MORE LOCAL ISSUES 1 MONEY TO LAST UNTIL IPEACE DAY STATE ADVANCES TO! CONTINUE. Facts and figures abovit the flotation of the two million loan were supiilied by . Sir Josepli Ward in. a statement which he made to a Dominion reporter last nig lit. "The total of applications that have come to hand," said Sir Joseph Ward, "amounts to £4,124.880, in which is included £480,225 for renewals by way of conversions. "Of the two million 7 ioan the investing public of Now Zealand receives .■£1,955,855, and the investments of Govoiuimont Departments amount to £44,145. » "In dealing with the applications all investments up to £100,000 have been accepted in full. Allocations have been made among those applicants for amounts of more thajn £100,000. Some have been given 50 per cent, of what they applied for, and some have been refused altogether. Speaking generally, applications for smaller sums have been accepted in'full. "The total cash silocations, with the period for /which the loans have been made, are as under-:—

£ For 5 years 1,062,455 For 10 years 359,635 For 15 years 82,050 lor 20 yoars _ 13,930 For 25 years 481,880 Total 2,000,000 "The loan. is issued at par, and 210 advantage in reg;ard to price is giren to anybody. The smallest and tho largest investors come in on' exactly tho samp terms and conditions. No discounts of any kind have been allowed to anyone. Tho. total cost of the flotation of this loan will be tho cost of advertising, the cost of printing, and the allowance of J per cent, to licensed brokers and banks in terms of the prospectus. The cost will'be very low." In reply to, a question Sir Joseph Hard said that any comparison of tho coat with jthe cost of floating a similar loan in London would be favourable to tho recent local flotation. A loan floated in : ; London would have first to bo underwritten and placed 011 .the market at .a; discount, and besides this mere wou Id bo charges for commission nnd brokerage. But a two million loan . po looked upon as a very small affair in. London. In this country it is not a. small affair. I', probably be a considerable timo, _ fiaid Sir Joseph .Ward, "beforo JSew Zoaland goes upon tho local market for another loan, because in all human , probability this loan will'serve the purposes for which it is raised until a considerablo timo after tho war is over. . Iu other words wo 6hall not have expended this loan on public works' before tho war is ended. With its conclusion there will bo an end also of thp war money that lias come to New Zoaland at the rate of £500,000 a mont/h, which is pqual to £6,000,000 a year, aaid tho question of future borrowing, ' and where it is to be done, will conin up for consideration then. "There is plenty, of money' in New Zea land.' What we Have to. guard against is any attempt to force up the rates of interest, and there ought to bo no necessity for tho raising of rates except, perhaps, to a reasonable extant. _ From my knowledge of matters, my opinion is that thoro is a very remote chance of this country being called upon to provide money by way of a Socal loan for war purposes. It'ought fo be tho policy of tlioso who are .iblo /to jend money for the legitimate vefquirements of the people of this country to recognise that they should be reasonable, «nd should not attenwt to make excessive profits out of circumstances brought about by the war, which, _ aft'cr all, our people are engaged in distinctly fpr tho purposo of preserving the Empiro. And preservation of tho Empire will make possiblo the preservation of tho Empire's wealthproducing trado.. "The Government will contimio to assist settlers and workers and local bodies witli advances, but the limit for local bodies will bo £5000. The Tates will be in proportion to what wo are paying for the money to the public. This cortainly should help to' steady the money market rates."