THE WAR LOAN

Dominion, Volume 9, Issue 2852, 17 August 1916, Page 6

THE WAR LOAN

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CHANGE IN PROSPECTUS

INVESTORS DESIRING TO PAY IN FULL

POST OFFICE CERTIFICATES

METHODS OF ADVERTISING

Several matters pertaining to the flotation of the war loan were referred to by the Minister of Finance (Sir Joseph Ward) iii tho course of a statement he mado to a Dominion reporter yesterday.

"Representations have been made to me on behalf of . trustees who flosire to invest moneys in tlio war loan on bohalf of trust beneficiaries," said Sir Joseph Ward. "They point out that if they break investments now earning interest, and do not receive interest from the Government upon the wholo amount that they propose to invest in the loan, tho result will be a loss to those whom they represent. Their difficulty is that in the prospectus it is provided that the amount subscribed shall be payable in four instalment's, spread over a period of six months, interest being payable only on the amount paid up. I recognise that the difficulty is one that should bo met, and I have given instructions to meet the case not only of trustees, but of other investors, that, provided applicants apply not later than August 21, and pay in the full amount for which they are applying not later than August 31, they may receive interest in full as from September 1. This is to apply to investments' of not more than £20,000. Those who wish to invest larger sums must do so in ternis'of the prospectus, but I have reason to believe that, generally speaking, it suits the applicants for larger amounts to have their instalments spread over tho period named in the prospectus. . Convenience of Workers. "To enable those who are at work until 5 o'clock to have an opportunity ol' purchasing the war. loan certificates (from £1 to £50) issued, by the Post Office, the money order offices throughout the country will be open oil Friday night and Saturday night from 7 to 8.30. It has been pointed out to mo that T /here are many peoplo who cannot conveniently apply to the Post Ofiico within the ordinary hours, and this_ extension is made for their convenience. . Advertising the Loan. ' "I have also arranged for an- officcr of the Postal Department xo bo sent round to the principal factories in towns where there are factories of importance to explain to tho employees during tho lunch hour the war loan 'certificate scheme. This will, of courso, bs done by arrangement witb tbe proprietors or the managers of tbe factories. Throughout tho country in the principal'picture theatres there will be projected on tho. screens the prospectus of tho war loan, and in Wellington, in Oourtenay Place and at the corner of Willis Street and' -Lambton Quay there will bo illuminated display advertisements ; to, bring tho loan issue under the notice of the people, i have been advised by t'ho Mayor-of Napier thai he in addressing a .moeting with the object of encouraging people to invest in tho loan, and I am telegraphing to th? Mayors of all other towns in the Dominion, suggesting to them that _ they may also address meetings on the same subject. This is the telegram I am sending to all Mayors: 'It would, bo of great assistance fff connection with ' the war loan-if you could arrange' to hold a public meeting at which yourself and other speakers might urgo the necessity of tho . public . taking up investments._ All money-order offices Throughout the country will be kept open from 7 p.m. to. 8.30 p.m. on Friday and Saturday next for the purpose of receiving applications for investment. I am sure you will bo only too pleased to assist tho Dominion, in this new venture.' Safe Custody of Certificates. "I have also arranged that all the purchasers of war loan certificates from the Post Ofiico may. have their certificates kept in safe custody in tho Post Office without charge. ■ This will ensure the* safety of the'certificates. The owner on depositing his certificates for safo keeping will be given an acknowledgment. It has been suggested that tlie keeping of these certificates fir live years may be no easy matter for some investors, and I ;agree that this may be so. The purchasers of large amounts of debenture stock will be aEle to make their own arrangements for safe deposit, but the small investor can not so easily do so, and it is a matter of some importance to him that his security shall be kept safe until the due date, five years hence. This provision will,'l think, be ail additional to small investors to purchase thesis war loan certificates." A Point of Interest. !_ Sir Joseph Ward was asked whether it vas any advantage to the Government for depositors in tho Post Offico Savings Bank to withdraw their money and invest it in the loan. Ho replied thaf it was preferable from • the Government point- of-view that tha money should ha deposited for a fixed period. If the money, remained in the -Post Office Savings-Bank it was practically at call, and tlie Government could not uso ft. for war purposes. It was, therefore, an advantage to have the money invested-in the war loan. He pointed out, also, that money was not withdrawn from the Post Ofiico and invested in the war loan. If a depositor in Clio Savings Bank wished to invest in "the'war loan lie could have his money transferred from his credit in the bank to' tho war loan.