DEFENCE LOAN

Greymouth Evening Star, 27 April 1937, Page 7

DEFENCE LOAN

FIRST HUNDRED MILLION

[by CABLE —PRESS ASSN. —COPYRIGHT.]

(Recd. April 27,’. 11 a.m.) LONDON, April 26. Mr. Chamberlain, in the Commons, announced that a hundred millions defence loan, at 21 per cent., issue price £991, maturing in 1948, would be issued on April 29. The defence loan took the market by surprise. Details arrived just before the closing of the Stock Exchange. The city editor of the Australiah Associated Press learns that the reaction was favourable.

CHANCELLOR’S STATEMENT.

[BRITISH OFFICIAL WIRELESS.]

RUGBY, April 26.

The terms of £100,000,600 issue of national defence bonds were announced by the Chancellor of the Exchequer, who explained that in the general interest of local authorities and other borrowers, it was desirable the market should know his intentions in respect to borrowing under the recent Defence Loans Act. The issue would be short to medium term security, redeemable before the end of 1948 by annual drawings, at par of not less than 20 per cent, of the amount of the loan, the first drawing being in the Autumn of 1944. Special arrangements would be made for the small investor through the Post Office and trustees of savings banks. The proceeds of the isues. until required for financing the defence programme, would be available for reduring the floating debt, and would in any case cover the estimated expenditure of £80,000,000, to be met this year from borrowed moneys. The Chancellor informed Mr Attlee that the Government would issue the bonds or loans as the market might appear to be favourable.

PROFITS TAX.

RUGBY, April 24.

The Federation of British Industries has invited the views of its affiliated trade associations on the national defence contributions contained in the Budget statement, and especially on the methods' of administering the tax. The federation’s taxation committee is considering th.- matter in order to place 'before the ( h i neellor of the Exchequer (Mr Chambi rltiin) the considered views of industry, particularly in points where safeguards seem necessary to avoid impeding industrial recovery.