LESSONS TO N.Z.
RECENT EXPERIENCES
FINANCIAL PAPER'S .COMMENT
DEMAND FOR STOCK
(By Telegraph—Press Association —Copyright.)
LONDON, August 10
Commenting on the small response to the New Zealand conversion loan, the "Financial Times" says:
"The denouement is the abnormal culmination of an exceptional transaction. New Zealand was helped out of a difficult situation, and official reticence over the extent of the assistance necessary casts no reflection on the merits of the stock. The terms of the issue make the loan attractive to investors who favour short-period repayments, hut they are in a minority, so that the new stock cannot he expected to enjoy the same free market as stocks of longer date.
"This defect might well be remedied by time. There are signs of a growing realisation that New Zealand's programme of social reform must be governed by income and the effect upon the national economy. This adds to the importance of the conversion rights attaching to the new loan. The demand for it is likely to broaden if the country shows that it has really taken to heart the lessons of recent experiences."
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Bibliographic details
Evening Post, Volume CXXVIII, Issue 37, 12 August 1939, Page 9
Word Count
183LESSONS TO N.Z. Evening Post, Volume CXXVIII, Issue 37, 12 August 1939, Page 9
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