NEW ZEALAND'S LAST LOAN.

Evening Star, Issue 11675, 6 February 1902, Page 5

NEW ZEALAND'S LAST LOAN.

I TO THE KDITOB. I Sir,—As much misapprehension is curI rent, will vou kindly print the following J from the ' Australasian Insnrance and Bankmz Record," January, 1902:—"The results of the New Zealand loan of £1,500,000, placed in London on 27th November, only about one-half being taken by the general public, were less favorable than might havo been expected, the long terms given :or payment fiving accrued interest to *be amount of about £1 3s lOd per cent. Adding to tuis sum the underwriting charge of 1 per cent., and the usual expenses, a little over £1 3s, the total cost of the issue was about £3 7s per cent, and as the price was £94 it follows that the net proceeds were equal to about £9O 13s per cent., the total being about £1,300,000. The difference between the amount realised and the nominal amount will, of course, have to be found when the loan falls due for repayment m 1845. Pretty expensive borrowing this!" Abandoning Mr B-ulance's self-reliant policy has to hz pnld for, and one is reminded of the bi-vt of all plans of finance—- • viz.. to spend ;<s little as possible—and that the best i-f all titles ;ire those which (ire least in amouiit. Cui bono.—l am, etc., F.M. Febrnnrr 6.