STATE LOANS

Hawera & Normanby Star, Volume XXXXI, Issue XXXXI, 15 June 1920, Page 5

STATE LOANS

THE QUESTION OF COMPULSION

The Minister of Finance (Mr Massey) stated recently that he did not think compulsory powers would require ■ to be exercised in connection with future, loans in* New .* Zealand (the Dominion reports). He said on Saturday that his inclination was to cease using the powers of compulsion still possessed by the Government. He anticipated that the loan shortly to be raised would be subscribed in the ordinary way. Compulsion in matters of finance required to be exercised with very great care. The point had not been fully considered in relation to the new loan.

The Public Works loan of £2,000,000 raised by the Government in New Zealand in 1915 will mature before the end of this year. Mr Massey stated, in answer to a question, that.probably holders would be allowed to renew either on the. old terms (4_- per cent, free of income tax) or at 5 per cent, with liability to tax. A final decision had not yet been made.. He did not anticipate any difficulty as to renewal.