THE WAR LOAN.

Lyttelton Times, Volume CXVII, Issue 17249, 17 August 1916, Page 7

THE WAR LOAN.

BANKERS’ COMMENDATION.

TO TIIE EDITOR Sir,—As many persons may not have had brought homo to them tho great importance of tho £8.C00,000 issues of the Government "War Loan being fully subscribed, and tho disadvantages which would accrue to everybody in tho Dominion were it not so subscribed, no would ask you to bo good enough to publish this letter, containing briefly our views on the subject. On all grounds tho success of tho joan ia to bo desired; those of patriotism and the proper treatment of our soldier?, having boon well expressed by those in authority, noed not bo dwelt upon by us, but there are other reasons affecting tho people in a more or less direct manner.

It would appear that if the necessary money be not raised by the loan it must bo got by further heavy taxation, in which all classes must, cither directly or indirectly, shave; also, the credit of the Dominion would suffer, which in many ways would affect the welfare of the people. Subscription to tho loan does not moan a sacrifice or loss. The investment has never been equalled in New Zealand as a saro and roinunerntivo one, and the return to normal conditions of the money market in a few years would cause it to command a substantial premium. Tho interest will bo distributed in the Dominion, and will bo available for investment iu and development of the country, In about sixteen yeara tho interest compounded ■will amount to the original principal, leaving the investment intact. Firmly belipving that full subscription of the loan will bo no less beneficial to the individual inhabitants of New Zealand (with whose welfare that of the institution in which we have tho honour to represent the ordinary shareholders is bound up) than to the Dominion as part of tho Empire, we strongly urge all who .have the means idle or within view to apply for as nutch of the loan as they can afford.— We ore, etc.,

MARTIN KENNEDY, W. WATSON,

Directors representing the shareholders on the board of the Bank of New Zealaud.

THE CASE OF TRUSTEES,

.STATEMENT BY FINANCE MINIS-

[Psr Pnzsa Association.] WELLINGTON, August 16. Speaking of the War Loan to-night, Sir Joseph Ward said:— “Representations have been mado to me by trustees and others who desire to invest moneys on behalf of trust benefioiaries, and they point out that to break investments now bearing interest and not to receive interest from the Government upon the whole amount would result in loss to those whom they represent. , Vl . ,{ I recognise that the difficulty is one that should be met, and 1 have given instructions to meet the cases, not only of trustees but of anyone who desires to apply for investment in war debentures, that interest will be allowed m full on applications up to £20,000, that is a full six months’ interest dating from September 1, provided that applicants apply not later than August 21, and pay the full amount for which they are applying on or before the end of tlio present month. “ Those desiring to invest for larger sums will be dealt with as announced in the prospectus. I have reason to believe that speaking generally it suits tho larger applicants to have their payments spread in instalments over the period named in the prospectus, that is, *ix months.”

WAR LOAN MEETING

SIR JOSEPH WARD’S SUGGES-

TION

The Mayor (Mr H. Holland) has received the following telegram from Sir Joseph Ward, Minister of Finance:— “It would be of great assistance in connection with the'War Loan if you could arrange to hold a public meeting at which you " yourself and other -,p takers might urge the necessity of the public taking up investments. All. money-order offices throughout tho Dominion will he kept open from 7 to 8.30 p.m., on Friday and Saturday next for the purpose of receiving applications for investments. I feel suro that you will be only too pleased to help the Dominion in its new venture.”

Speaking to a reporter last night Mr Holland said that he was not very sanguine of getting a good meeting this week, owing to the carnival, although he was most anxious to do all he could to fall in with Sir Joseph Ward’s wishes. Consequently he had sent the following telegram to Sir Joseph:— “\Vjs gladly co-opeilate re War Loan, [s fx imperative that the meeting should be held before Monday eveu- * ing.” Mr Holland states that he hopes to secure the Chamber of Commerce for the meeting.

In response. to a telegram from the Minister of Finance the Mayor of Sumner (Mr J. B. Laurensou), has called a public meeting for the purpose of urging tho necessity of the public subscribing to the War Loan. The speakers will include tho Mayor, the Hon John Barr, and other residents of the borough.

HINTS TO BUSINESS FIRMS. Suggestions on the subject of tho War Loan were made to a "Post” reporter by a Wellington business man who has come back from an extended visit to Sydney. In tile New South Wales State, he said, when the big war loan was being floated, many business firms took up war bonds on behalf of their employees, under an arrangement by which they accepted monthly .repayments from the employees by way of redemption. By such a. system the success of the loan was assured, and at the same time the small investor was given a .chance which he could not otherwise have had, and on terms which presented no difficulty. He considered that the adoption of such a course would absolutely ensure the success of the New Zealand loan, and at the same timo make things very much easier for those who were onlv too willing to invest, but were unable \o put down a lump sum.

APPLICATIONS IN OTAGO. Inquiry at the Dunedin Post Office, states the .“Otago Daily Times,” showed that up till Tuesday there had been uo great rush of applications from people wishing to subscribe to tho War Lean, but that applications were then Commencing to eomo in freely. It was pointed out that applications for the larger sums would no doubt lie made through bankets and brokers, and that they would also be made direct to tho Treasury. From Friday morning till Monday night bonds to the total amount of £86,648 had been applied for at the Dunedin Post Office, a.nd war certificates (that is. for sums under £SO) to the amount of £1237. Ito-

porta to baud state that a big demand fo- both bonds and certificates has sot in in the country. The shorter period of tho loan in regard to the certificates—they are payable at the end of five years—is making an appeal to some investors, who eectn inclined to break up their loan money of, say, £IOO into small amounts, and purchaso certificates in preference to a bond worth the full £]oo.

INSURANCE COMPANY’S APPLI-

CATION

[l’es Press Association.] AUCKLAND, August 16. The New Zealaud Insurance Company will take up £IOO,OOO in the New Zealand war loan.

COMMONWEALTH LOAN.

REOPENED TILL SEPTEMBER 1

On, August 1 tho Federal Treasurer (Mr Higgs) announced that in response to requests from all parts of Australia hp had agreed to accept subscriptions to the third war loan up to September 1 next. Many small subscribers, Mr Higgs explained, did not fully understand that they were not required to deposit £1 with' their application for a £lO bond, but were asked to pay only the sum of os. Intending subscribers can pay their os deposit at any time dur-' iug this month, and the balance of los on or before September 1. Thereafter payments of 5s may be made on or before the following dates:— Monday, October 2, 1016; Wednesday, November 1, 1916; Friday, December 1, 1016; Wednesday, January 3, 191/ ; Thursday, February 1, 1917; Thursday March 1, 1917; Monday, Apnl 2, 1917; Tuesday, May 1, 191/; Thursday, June 1, 1917. This concession of extended time applies not only to small investors, hut to those prepared to put in large sums“l hope,” said Air Higgs, “thatthose who, through inadvertence or other cause, failed to invest at all in the war loan, or did not subscribe as much ns they were expected te subscribe. will avail themselves of this opportunity to rise to their responsibilities.”

TWENTY-TWO MILLIONS SUB-

SCRIBED.

Further applications received by post, up to August 2, on account of tho third issue war loan bring the amount up to £21,559,080. Other applications were expected from distant centres, bringing the amount to tweuty-two millions. The number of applicants and the amounts according to States are:— Ahiount No. ofap- applied State. • plicants. for. . £ New South Wales . . 24.001 0,M4,170 Victoria • • * ; Queensland . • '■ L 76a South Australia . /• 6,301 Western Australia . • L 893 ’ffn Tasmania .... -,304 R.abaul (New Britain) . <1 3,160 London .... ° L* 7o Total ... 73,782 £21,530,080 Mr Denison Miller, the governor of the Commonwealth Bank, who embodied these particulars in a letter to the Federal Treasurer, Mr Higgs, goes on to say:— “It will be seen that tho response by the publio has again been very gratifying, tho principal feature being the largo number of applications for small amounts. The efforts of the war councils in tho various States have helped largely in the result, particularly in tho State of \ ictorin. where the total number of applications to date numbers 31,403. The Press, both metropolitan and country, have again given consistent support to the loan, and were very helpful in assisting to educate the public ns to their duty' to subscribe to the loan. Again the ‘banks and Stato savings banks throughout the Commonwealth, and members of the Stock Exchanges and 1 the insurance companies, rendered very valuable service. Tho post offices at every agency whero money-order business’ is conducted, as before, received applications from the public, making it possible to have applications lodged in every town and village in the Commonwealth. “I trust that the -result will be deemed satisfactory.”

SECOND AND THIRD ISSUES COMPARED.

A table has been prepared by the Commonwealth Bank, and made an addendum to Mr Miller’s letter, comparing tho number of applications and amounts received from banks, companies, and individuals in the second and third issues. It should be noted that the totals for the second lssMO arc the complete totals, while the totals for the third issue are those advised up to August 2. The table is as follows. Second issue. Third issue. No. Amount. No. Amount.

Applications Insurance companies . 09 4,037,030 70 3,830,730 Other appli£lo,ooo°' ° r . 100 2,005,020 84 1,352,900 Applications £IO,OOO 28,756 11,218,610 69,415 10,207,680

Total 28.913 21,65-5,688 60,592 20,569,100

BANKER SATISFIED. In the course of his speech, delivered to shareholders at the meeting of the Commercial Bank of Australia, Ltd., at Melbourne, the chairman (Mr Robert Harper) said:— “ On the morning of the day when tho announcement of tho War Loon appears in tho newspapers, I think it is only right to sav. on behalf of tho board that we feel that the Treasurer ought to have every reason for satisfaction in tho result. (Hear, Ildar.) Considering that this is not a favourable time of the year to float largo loons—it is tho dead season, to operations of every kind ore more or less in a state of suspouse—to have had a response of twenty-odd millions in such circumstances, and’ at a time, following, as it ha 3 done, upon a previous thirty-odd millions floated Within twelve months, I think the Treasurer of Australia has every reason to ieel proud, and to realise that the f>eoolo of the country, in responding to bis call, as they have dona, show their determination to see this . business through by every means m their newer.” ...