N.Z. Conversion Loan

Gisborne Times, Volume LXXXIII, Issue 12593, 1 July 1935, Page 5

N.Z. Conversion Loan

LIST TO BE OPENED AND CLOSED TO-DAY ' : DOMINION’S SOLID FINANCIAL STANDING ’:i LOWEST BATE OF CENT!HU 7 (U.P.A. by Elea. Tel. Copyright) LONDON/ .Tunc 28. ■ The list of cash subscriptions for the New Zealand conversion loan of £8,000,000 at 3 per emit., repayment 1952-55 at £93 IQs opens oriel closes on July 1. The final instalment of 93J per cent, is payable on October J. The conversion closes on July S, Convertors, receive 30s. per cent, easli. ■ ; Mr J. G. Coates, in a statement sold he was glad that New * Zealand’s credit standing in 'London enabled her to borrow at the lowest rates, in the present century. New Zealand's credit wa® fully deserved. “We have .not only succeeded in closing 1934 with. ,d satisfactory surplus, hut liquidated tiro whole <9 the deficits accumulated in the recent difficult years’, he said. The pfospcctuis points out that 43 per cent, of the New Zealand public debt is hold in the Dominion, compared with 17 pfer cent, in 1914. TRIBUTES BY FINANCIAL JOURNALS. (ftI.P.A. by Elec. Tel. Copyright) ((Received June 29, 5.5 p.m.) LONDON, done 29. Paying a- tribute to New Zealand's credit, financial journals commend the loan and predict success. The Financial News emphasises that mutton, butter and wool provide the money with which the British bondholders will he paid. It says: “While tile shadow rtf Mr Elliot has fallen over the New Zealand farmer, there is no sign of a change in British policy, which is not to endanger the high standing the Dominion has always enjoyed in the British capital market. TRIBUTES TO NEW ZEALAND GLOWING COMMENT IN BRITISH PRESS ISSUE CERTAIN TO HE WELL RECEIVED (Supplied and Released by the New Zealand Government.) LONDON, June 29. All the principal papers have headlines referring to the New Zealand conversion loan. Among the comments, the Financial Newi; editorially states : The issue is almost certain to he well received, for New Zealand's credit, stands high in the estimation of the London market, and there is a definite shortage ot New Zealand trustee istocks on offer. A further step will thus he made in placing New Zealand's external debt on a. lower basis. New Zealand is one of the few countries that can boast of a budget surplus during itr, last financial year. By the establishment of the Reserve Bank the Government lias got rid of the whole of its large floating debt. The article continues : ■Njcw Zealand relies for her prosperity almost entirely on the export of agricultural products to Britain, wliich provide the money with which t..,c British bondholder is paid. Thus, any discussion on what the future holds for New Zealand must, consider the future trend of the British agricultural policy. The shadow of Air Elliot liar, already fallen over the New Zealand farmer, but there is ho. sign of so drastic a change in the British policy as would ho necessary to endanger the high .standard whic-lj the Dominion has always enjoyed in the London capital. market. The Daily Chronicle tsnys:— The market is inclined to think the terms are a little stiff, but the finances of New Zealand arc sound, and there is no floating supply of Now Zealand stock on the market, so a satisfactory rferpoijise to the issue is looked lor. N.Z. TERMS. PLEASE CITY The Daily Mail has a large heading across' its financial page, “New Zealand Terms Please the City.” 1 : The "Financial Times says : “The issue ifj excellent. trustee investment.’’ . ■ - v ■ The Manchester Guardian, »h ft long financial article on ' New Zealand finances] remarks: — “New Zealand’s borrowings in 1933 and 1934 were almost nothing-” ' ' ' '' It refers to the report of the Dominion’s 1 economic committee in 1932, and adds:--“New Zealand L not wholly on the other side of the difficulties re ferred to in the report, but the leaders oif tlio Dominion have tackled them with, energy, overriding those who refused to recognise the need for a change, while .showing tact and skill in rejecting Unrealistic proposals. The efforts of responsible leaders in New Zoa land to find their way pAst obstacles without falling down precipices, are recorded ,iri fome of the most remarkable State papers •of recent years.” • ''. j. . it adds:— “The New Zealand Government lias "ndt'waited passivelp for . : an •iinproviherit in; thb prices of pro-- ~ e clu’ce. Much . work'hAs 'been done in fehtairiing by Government media t.ibn add dsiristaiicfei, ' hll-teund ’ feuts in ' the mortgage interest rotes

payable by fanners. Then, against the opposition of some conservative bankers, the Government has taken the opportunity to found a reserve iiniiic on modern lincik and to establish currency exchange relations with London on iiiodcrn lines.” > •lilid article .concludes j , • ‘‘The iftiprovemeht in Goycrn- /, meivb finances is l mother jp&yt .of ■the story; Here, too, thevsliccers lias • been considerable. . Most of the leading newspapers publish an interview with Mr Coates in which the Minister expressed siitisif action with the borrowing teriiis the .Dominion has.been able to arrange, which give the r lowest rates ' of the contuyy. ' . t .