INSCRIBED STOCK

Evening Post, Volume XCIV, Issue 41, 17 August 1917, Page 7

INSCRIBED STOCK

DISCUSSED BY LEGISLATIVE

COUNCIL.

The nature of the securities offered ta connection, ■with the war loan was under discussion in the Legislative Council yesterday afternoon, when the New Zealand Inscribed Stock Bill was received from th© House of Representatives. After the Bill had been read a first time the Leader (Hon. Francis Bell) moved the second reading, and remarked! that he intended to ask tho Council's permission to refer the Bill to the Statutes Revision Committee.

. Following on his remarks, reported in. last night's Post, the Hon. 0. Samuel stated that he had interviewed the man-, ager of a bank that day, and he had stated that he had no hesitation in saying thait the banks would Be very reluctant to accept some of the securities' proposed in the Bill. He had no doubt, however, that. the loan, would be' a success, and the money would .be raised that was so urgently required.

The Hon. Sir W. Sail-Jones said ifche proposal was a cross between. the inscribed stock of the Old Country and', the stocks knows as consols. Under the Act, as he understood it, there would not only be no coupons, but no bonds or debentures. He was glad -thait "the Leader had suggested referring the Bill to the, Statutes Revision Committee, and. lie had no doubt that from clause 10 onwards it could be improved. He thought it could be better if the inscription, in-i stead of being done by a branch, of theT Treasury, was done by the banks. The Hon. Sir Francis Bell, in thd course of his reply, said that in the case of all money raised by people through - their banks the debentures would be; held in the name of the banks. Ihia; simplified the position to begin with for the immediate issue of the loan. There might be a difficulty in. regard to trustees, but after the trustees raised the money thefre could be no* difficulty in the way of the security being in tUie name of the mortgagee. Theresas no analogy between Consols and! the present loan. A larger sinking- fand'wias being prepared than was provided, for ordinary war loans, and he be]ie«asd'-'-the Government intended to bring tonan-<eariy close tha burden of duty incurred by. the war. After pointing out tihe • necessity for keeping the registry at the Treasury instead of the bank, "fifo- sVancis remarked that it was. essential to put the Bill through all its stages Aha following day. He had no doubt that his colleagues and the Minister- of Finance would endeavour to meet..file-diffi-culties that had arisen, and if .the'difficulties still continued he would ask. 'his colleagues to pass an amending. jStet^ateu in the session. . ■ ' ■

The Bill was read a second time and referred' to the Statutes Revision Committee for report on the; following day. ■ ' •