NEW WAR LOAN

Evening Post, Volume CXXVIII, Issue 48, 26 February 1942, Page 9

NEW WAR LOAN

SUBSCRIPTIONS IN ADVANCE

EASING OF STRAIN

As from tomorrow advance subscriptions will be accepted for a new war loan, the terms and conditions of which have not yet been fixed. The Prime Minister (Mr. Fraser) explained last night that under this arrangement it would be possible to spread the raising of the loan over a longer period with, it was felt, a consequent easing of the strain of financing the Dominion's war activities. It was evident, Mr. Fraser said, that a substantial amount would be required during the forthcoming financial year to meet a part of the cost of New Zealand's increasing war expenditure.

Mr. Fraser said that the raising of a large Government loan within a period of a few weeks, or less, meant a sudden and heavy demand on the investment funds of the public. On the other hand, many institutions and persons were in a position to invest considerable amounts from time to time throughout the year, and it \Vas felt that the strain bf -financing our war activities would be eased if the Government accepted money as it became available and thus spread the loan requirements over some months.

ACCEPTANCE OF CONDITIONS. The Reserve Bank of New Zealand had been authorised, therefore! (in terms of the War Loans Advance Subscriptions Emergency Regulations, 1942) as from Friday, February 27, to accept advance subscriptions for the next war loan subject to the following terms and conditions: — . Every advance subscription, which must be for an amount of £10 or a multiple of that sum, will be applied in the purchase of stock issued in accordance with the prospectus of the next- New Zealand Government loan. Interest on advance subscriptions at a rate which will be specified in the war loan prospectus, when issued, will accrue from the date the advance subscription is lodged, but will not be paid till after the issue of the prospectus, and then, of course, in accordance with the provisions contained therein.

"The war -loan to which the subscription is applied will provide for both long- and short-dated stock, consequently the application for the advance subscription should specify whether-long- or short-dated securities are required," said the Prime Minister. "Applications for. long-dated stock may be altered to short-dated stock and vice versa provided written notification of the required alteration is delivered or posted to the Reserve Bank not less than seven days after the opening date of the war loan. Also,, advance subscriptions may be withdrawn by the subscriber at any time not later than seven days after the opening date of the war loan, on demand in writing delivered or posted to the Reserve Bank; Wellington. Interest will not be paid on advance subscriptions which are withdrawn." FORMS OF APPLICATION. . Mr. Fraser said that forms of application, on which the terms and conditions governing the advance subscriptions were endorsed, should.be available at all banks and money-order offices throughout, the Dominion within the next day or two. Also, all stock exchanges would have particulars of the scheme, and the intending investors were therefore requested to get in touch with their banker or sharebroker.

"It is the obligation of everyone who can afford to do so to invest in Government war loans," said the Prime Minister. • "Adequate supplies and equipment for our forces cannot be provided unless the Government have ample means at their disposal, and it is hoped by the introduction of this scheme to ensure that a considerable portion of the money, necessary for maintaining and equipping the forces will be provided in a manner which will cause the least possible strain on the Dominion's economy."