NEW ZEALAND LOAN.

Hawera Star, Volume XLV, 16 May 1925, Page 7

NEW ZEALAND LOAN.

PRIME MINISTER. INTERVIEWED. N.Z. CREDIT NOT AFFECTED. (BY TELEGRAPH PRESS ASSOOIATION. WELLINGTON, May, 15. The Prime Atinister, Sir Francis Bell, who was acting for the late Finance Alinister. Rt. Hon. W. F. Alassey, when the 41 per cent, loan was put on the London market, was interviewed by a Times representative today with regard to the comparative failure of the loan, as indicated by a London message. “We have no further information, no further figures. ■ ’ stated Sir Francis Bell, “than those'which appear in the cables. They show that the underwriters have to shoulder some' 85 per cent, of the loan. I think, however, it is quite possible that if Air. Alassey whose financial ability was recognised, had lived, it might have made a difference-. I don’t think that the reintroduction of the gold standard in itself would affect the position at all. but the Bank of England has raised the bank rate to prevent the expori of gold from the Old Country. The eifect of that is that money can only be borrowed to go into a colonial loan at 5 per’ cent., and,’ as our loan is only at 4* ter cent., though issued at £9-1 10s, the raising of the bank rate has affected the amount of money available to put into the New Zealand loan. The bank having raised to 5 pe r cent, the rate for money to put into such lonas, has made it extremely difficult to raise monev to put into a loan at 4-i per cent.,' even at £94 10s. There is absolutely no reason, however, to suppose that New Zealand’s credit stands any lower than before —absolutely no reason.” Asked why the loan had been placed on the market at the present time. Sir Francis Bell said “I don’t know. lon must form your own conclusions. K would anpear to be fortunate for Nov Zealand,” lie added, “that we got in first.”