THE NEW LOAN.

Hawera Star, Volume XLVIII, 23 September 1924, Page 9

THE NEW LOAN.

FURTHER DETAILS. Further information about the. terms of the loan of £1,125,000 which the Government is obtaining from the Bank of New Zealand was given by the Prime Minister, ill reply to questions piit to him during the week-end respecting some press criticisms of the loan (the Dominion reports).

“Every tiirie we raise a loaii we issue debentures,” said Mr. Massey. “They will be issued on this occasion, and tlie bank will hold them. The Government will be entitled to redeem them at any time if it finds the market favourable.” “What about the suggestion that the bank may sell them to the public at a premium?” Mr. Massey was asked. “Why, who would pay a premium for debentures at oi -per cent.?” he asked in return. “Certainly not at the present time.” “Will the hank be entitled to sell them in public?”

“Not Without the Government's consent,” replied Mr. Massey. Regarding the suggestion that the Government might have floated an internal loan and got the bank to underwrite it, the Prime Minister said that the present arrangement saved brokerage, advertising, and all other expenses connected with the floating of a loam The saving over a London loan was very large indeed, for exchange Was about 2 per cent. As for the purchase of new shares iii the bank, the Government would he doing very well. It would he getting one share for every one of the last issue now held by it. Private shareholders would get one for every four. Altogether it was a -very advantageous transaction from the Government’s point of view.