INTEREST ON LOANS.

Marlborough Express, Volume LIII, Issue 222, 19 September 1919, Page 6

INTEREST ON LOANS.

Sir James Allen informed the House that £400,510 which had to be paid to the Imperial Government was tor a loan of nine millions at 5 yer cent. The first loans to this country, he explained, were at S\ per cent under Exchequer bonds, but the latter interest on those bonds, through financial stress, was raised by the Imperial Government to 5 per cent. Sir Joseph Ward explained that the 3£ .per cent interest loans were obtained from the Bank of England by the Imperial Government at 3f per cent, but later the Government had to go on the open market at 5 per cent discount. While he vas Finance Minister in the National Government no loans were floated outside New Zealand. Most of New Zealand's loant were floated at 4$ per cent at par. The Hon. Mr Russell deplored the fact that England was asking £500,----000 interest for war loans, considering what this country had done. We were but a' million and a quarter of population, and had equipped and despatched over 100,000 'men to help England when she was in distress. Sir Joseph Ward explained that England did not make a penny piece out of the loans. The amount mentioned by Sir James Allen was merely a sum to reimburse England for what she had paid on our behalf.