N.Z. BORROWING

Grey River Argus, 31 July 1924, Page 5

N.Z. BORROWING

LACK OF INFORMATION. IS COUNTRY LOSING (Special to Argus) # WELLINGTON, July 30. On the subject of the 1924 loan, Mr T. K. SiJcy said in the House this afternoon, that the country was never able to obtain precise information as to the actual cost., and, consequently, the actual rate of interest on its boiroxvings in London, until about two years had elapsed. Referring to the last loan, the Budget had stated that; the interest yield to the investors was £4/14/9. That statement did not disclose as much information as could, and should, have been given. The London “Tiiws.” referring io this loan, said that the running yield was £-1/14/9, and Hint the total average yield, allowing for the bonus payable on redemption, ax as £l/18/1. When brokerage, advertising, aud other expenses and charges were, added, and when the cost of administration by the Advances Office was taken into account, it Avas clear that this money could not be lent out iby that Department at 41 per cent., and it might not even be profitably employed at per cent. He supposed that if. Avas intended that this money would replace money available at a lower rate, and no doubt the loan from the accumulated surpluses to the Advances Office of over £2,000,000 Avas so employed, as it was available for lending at the loxvest, rates..