MR. H. BEAUCHAMP'S OPINION.

Hawera & Normanby Star, Volume XLI, Issue XLI, 4 July 1921, Page 5

MR. H. BEAUCHAMP'S OPINION.

Referring to the loan of £5,000,000 which, the Prime Minister (Mr. W, F. Massey) is raising in London at a rate of interest of 6 per cent., at a minimum of £96, Mr. Harold Beauchamp, chairman of directors of the Bank of New Zealand, stated at Auckland that, with the cost of underwriting, he assumed that the cost would be 6| per cent. He was not at all surprised that this figure would have to be paid. The Dominion could not expect to get money cheaper at the present .time. As a matter of fact, the India Council had recently raised a large sum at 7 per cent., and if the Dominion could raise its loan on the terms indicated it would be a matter for congratulation. Mr; Beauchamp entirely approved of the policy of raising loans for short periods in view of the high rates ruling and the possibility of the rates falling.. It was a fact that the shorter the period of the loan the greater the return to the investor.?, but he considered ihat the nght to repay in 15 years in the present instance was a valuable option for the Government to possess.