NEW ZEALAND LOAN

Dominion, Volume 22, Issue 133, 1 March 1929, Page 10

NEW ZEALAND LOAN

PRIME MINISTER CONGRATULATED “Just a line to congratulate you on the result of the New Zealand loan, which was wonderful when compared with other countries, and .is a great compliment to you personally,” writes a leading London financial authority in a letter dated January 11, to the Prime Minister (Rt. Hon. Sir Joseph Ward). “A certain company created a great boom in the city, and large profits were made in England by those who had the pluck to apply for the shares,” the writer adds. “I could have got in on the best possible terms, as a friend of mine floated the shares and telephoned me in good time, but I could not see how the company could pay dividends on the inflated capital. However, quite a number of my friends made £lO,OOO each and invested it in the New Zealand loan. It is difficult at times to follow American finance, for they pay 8 and 10 per cent, for advances in New York and then buy millions’ worth of shares at high premiums. They get a lot of money in England through the banks, as I understand the reading American bank's will not advance more than 50 per cent, against industrial shares. The'wool market is good, and likely to be. Bradford cannot keep prices down in face of a keen demand from outside. Dairy produce is also selling well, and you should have a real good season in New Zealand.”