The Half Million Loan.

Hastings Standard, Issue 191, 8 December 1896, Page 2

The Half Million Loan.

SUCCESSFUL FLOTATION. [By Telegraph] (Per Press Association.) Wellington, Dec. 7. The following is the official communication respecting the half million loan, offers for which closed at noon to-day:—"Tenders for a half million rH per cent 10/25 debenture loan were opened this afternoon in the presence of a committee consisting of the Colonial Treasurer, Controller and Audi-tor-General, and Mr Henry Kember, the well-known accountant, of Wellington. Ten tenders had been lodged at the Treasury, and upon being opened were found to aggregate the sum of £508,000, the average price being slightly over £IOO. Considering principal and interest are both payable in the colony and that no real market exists for buying and selling securities such as these the Government are to be congratulated on the successful flotation of this loan, which marks a wise departure in the effort to retain the interest within our borders, and so save the drain which is always going on in having to remit our interest to English investors. It is a great many years since a Government loan was locally raised, and the price of the issue then (in 1873) for £250,000 was £9O 10s. For a-1 per cent loan £40,000 was tendered for, about £BO,OOO being 10* per cent below the minium, and only £3OO was allotted. The present successful result is therefore very flattering to the Government, and we have an assurance that no amount of the issue has been allotted to a Government lending department ; the money will come from the public as hona fnle investors."