WAR LOAN

Evening Post, Volume XCII, Issue 32, 7 August 1916, Page 8

WAR LOAN

FURTHER MINISTERIAL

STATEMENT

AMENDMENTS TO FINANCE BELL

■Amendments to the Finance Bill were introduced by Governor's Message in the House of Representatives to-day. Sir Joseph Ward,.in explaining the amendments, said that one of them would deal with the regulation of the rate of interest on deposits. Clause 35 made provision for those people who desired to invest at the Money Order and Post Office Saving Banks small sums of £1 to £50 in the loan to be advertised shortly. The loan under the main pros T pectus had nothing whatever to do with these small sums, because, under the main loan, the smallest amount that could be invested' was £50. \Another amendment provided. for the raising of a loan not exceeding £50,000, for the purposes of afforestation. Another clause provided for making permanent annual appropriations of £250,000 for State coal mines. In regard to the small investors in the 10an.., certificates would be issued through the Savings Banks on the following terms :—£l certificate (16s), £2 (£1 12s), £3 (£2 8s), £4 (£3 4s), £5 (£4), £6 (£4 16s), £7 (£5 12s), £8 (£6 8s), £9 (£7 4s), £10 (£8), £11 (£8 16s), £12 (£9 12s), £13 (£lO 8s), £14 (£ll 4s), £15 (£l2), £16 (£l2 16s), £17 (£l3 12s), £18 (£l4 8s), £19 (£ls 4s), and so on up to £50 (£4O). In reply to questions, the Minister stated that the loan would be for a currency of five years, and the rats of interest would be 4£ per cent. The fullest information would be advertised, and he thought the people would rise to the occasion and support the loan. One important point was that the money borrowed would be kept in the country, although part of the £16,000,000 ■ loan must of necessity be obtained from the Imperial authority. The bulk of the £8,000,000 loan would remain in the country and would be kept in circulation here. So as to prevent any local disturbance, the money as deposited in the different banks would be drawn upon as the Treasury might require in propor; tion to the amounts deposited.

In answer to Mr. Buick, Sir Joseph Ward stated that applications for allotment would be paid by 21st August. Under the main prospectus, that was for amounts of £50 and upwards; the periods would be fourteen years or twenty-five years. Investors would be able to take up debentures for either of these terms. Investments through, the Poet Office, of amounts of £1 up to £50, would be for a period of five years.

Mr. Payne said that the local war loan would mean £36,000 a year increased income for the Dominion. He was glad that the Finance Minister, under pressure'from the press and Parliament, had agreed to suck a loan. He urged that the . Minister should insist that-banks handling New Zealand money in London should invest it in New Zealand securities.

Sir Joseph Ward said there had been numbers of people throughout the country who had proclaimed their anxiety to help in the war. Thousands had said that, in view of their inability, from too old age or other causes, to join the forces, they wished to help in some other way. He hoped they would avail themselves of the opportunity now given— both people of small mea.ns as well as those controlling large sums—of showing that the people of this Dominion were able to provide not only men and munitions, but also money. The amendments were agreed to.