NEW WAR LOAN

Greymouth Evening Star, 18 August 1942, Page 4

NEW WAR LOAN

MR D. STEWART’S COMMENTS

DUNEDIN, August 18. . Commenting on the Gove 1 r announcement of a new war loan o £lO 000,000, Mr Dowme Stewait saia that,’ though the last loan was oversubscribed, it was obtained . after much pleading and ca]olin & , and by inducing large investors to increase or double their first a tions. There was plenty of money awaiting investment,, and there was a keen patriotic desire to /uPPjy The obvious explanation of the Government need to coax was that h was not willing, to pay the market price for the money. Its last loan was already at a discount, which meant a capital levy on all investors who had to market their war bonds. The Government paid the market price for all other war material, and why set up a different standard when. n hired money? Market prices led the public to expect 3| per cent., but the Government was willing to pay only 3 W Downie Stewart added that the addition of one-quarter per cent would not help the investor whose income and Security taxes peihap reduced the yield to 15/- pel £ t°°> but the small investor who was de pending on a slender income was deeply concerned. No doubt he would respond, though knowing he wotm lose some capital owing to the loan depreciation, but he could not continue to do so indefinitely.