NEW ZEALAND LOAN

Evening Post, Volume CV, Issue 110, 10 May 1923, Page 7

NEW ZEALAND LOAN

FULLY SUBSCRIBED BY THE PUBLIC

THE CHARGES FOR INSCRIBING,

(UXIIED PBEB6 ASSOCIATION COPIRIGKI.) - MEW ZEALAND CABLE ASSOCIATT6N.) (Received 10th May, 9 a.m.) LONDON, 9th May. The New Zealand loan of £4,000,000 lias been over-subscribed. The Bank of New Zealand has to-day been advised by cablegram from London as follows :—"Government loan of of £4,----000,000. The list has been closed. The loan haa been fully subscribed by the publio." In connection with the raising of the £4,000,000 loan, the Prime Minister announced last evening that a new arrangement had bean made by which the Bank of England would reduce its charges for inscribing the loan from £2500 per million to £1250 per million. The bank was also reducing its annual charges for management to a flat .rate of £300 per million; that applied to all New Zealand stock managed by the Bank of England. The bank was also refundang_ a considerable amount of money •which had been charged at a higher rate for this purpose in past years, particulars of which would be given in the Financial Statement. "The loan just floated," said Mr. Massey, "has been issued at 92, the rate being 4 per cent., and is redeemable in 1943, or, at the option of the Govern- i Went,, in 1938, or at any date between ' 1933 and 1943. The' issue at 4 per cent, on the conditions given has the advantage of establishing a particularly low I rate for Dominion loans, and must have a marked effect on future operations. ' "If our new loan had been issued at SB, rate 4A per cent., with the recent New South Wales currency of 12 years (and we had the option of doing 1 this), the cost with redemption would be £4 14s 6d, while the New South Wales issue (94 at 4£ per cent.) cost £5 8a 9d, a difference in favour of New Zealand of Ss 3d per ceni. per annum. v "Naturall the shorter term—ten or twenty years—accepted for the new loan increases the ( redemption cost as compared with ah issue with a longer currency, but as against this the shorter currency of the present New Zealand loan effects a saving of £20,000 in compounded stamp duty charges. "It is scarcely necessary to add that "what has taken place in connection with this _ loan proves once again that the credit_ of New Zealand is particularly high in financial circles in London."