GOVERNMENT STOCK

Evening Post, Volume CXXXVI, Issue 87, 9 October 1943, Page 5

GOVERNMENT STOCK

"OVER THE COUNTER" ISSUE

"Over the counter" issue of New Zealand. Government Stock was announced by the Minister of Finance (Mr. Nash) last night. The Minister said that the gap to be bridged as indicated in the Budget was £50,000,000, of which it was estimated that £10,000,000 would come from departmental funds and £40,000,000 would have to be raised by public loans. The 3rd Liberty Loan for £35,000,000 was to provide the bulk of this leaving £5,000,000 to be obtained later in the year by "over the counter" sales of stock. Actually the loan this year was oversubscribed by more than £4,000,000, but this surplus was applied in reduction of the amount owing to the British Government under the Memorandum of Security Agreement. New Zealand was thus in the same position as envisaged in the Budget estimate, requiring a further £5,000,000 from a public issue to finance its war programme and stock for this issue was now on sale.

This stock would be the same as for the 3rd Liberty Loan, namely, 2£ per cent, stock maturing June 15, 1947-49, and 3 per cent, stock maturing December 15, 1953-56, and would be on sale at all trading banks and postal money order offices.

Interest on. both classes of stock would be paid half-yearly on June 16 and December 15, and in the case of the first payment interest would be calculated from the date of lodgement of the principal sum till the next halfyearly interest date. The decision to have only one loan for war purposes during the present financial year meant that for a considerable portion of the year there was no adequate avenue of investment available for money which investors had earmarked for investment in Government War Loans and the "over the counter" issue would ensure that this money would find immediate investment. The cash as received would be paid into the War Expenses Account and used for war purposes or for the purpose of repaying advances which had been made by the British Government under the Memorandum of Security in connection with the maintenance of our forces overseas.