N.Z. LOAN FAILURE

Greymouth Evening Star, 16 May 1925, Page 5

N.Z. LOAN FAILURE

PRIME-MINISTER’S STATEMENT (Per Free* Association.) * ■ j >, « >V ' .f r-'-‘ . r j’ ‘ Ih WELLINGTON, May 15. The Frimri'’Minister/' Si’r Francis Belli/’ who - was acting for the late Firi’arice 'Minister, ‘ Rt. Hon; W.’F. Ma&sey, -when the New Zealand 4| peK ceik/'Toah was put on’ the Londofit -’market, ’Was'“interviewed by a “Tiin'es”’ representative to-day for his 11 opinion' with regard to the comparative failure of the loan, as indicated by' tlie London cable messages’ 1 * ’ ' % “We -havd'ho' further information, and nd further figures,” stated Sir Francis; Brill; “than those which appear in the) Cablegrams. They show that thb 'underwriters have to shoulder somri *Bs* per cent, of the loan. I think, however/ it is quite possible that if Mk MaSsey, whose financial ability Was’ recognised, had lived, it might Hate made a difference. I don’t think that any reintroduction in the gold standard,' in itself, 'would affect the position 'at all; but the Bank of England has raised the bank rate to prevent* tlie'output of gold from the old Country. The effect of that is that money citf only be borrowed to go into a colonial loan at 5 per cent., and as dur-loan is only at 4£ per cent, though iSSued’ at £94 lOsi, the raising of the Bank rate has affected the amount of money available to put into the New Zealand Loan. The Bank having to five per cent, the rate for f ‘money' to put into such loans, hasHriade'it extremely difficult to raise money to put into the loan at 4J-per 'cellt./ even at £94 10s. There is absolutely 1 no reason, however, to suppose 'that ’New Zealand’s credit •stands any‘Towdr than before—absolutely no reason.”

.Asked .’why' the loan had been placed on the'market at the present time, Sir‘Francis Bell said: “I doii’t know! You Must. form your own conclusions?’ “It would appear to be fortunate fori New Zealand,” tie 'added, “that we/gpV/fh first.”