NEW ZEALAND LOAN.

Manawatu Standard, Volume XLV, Issue 139, 16 May 1925, Page 5

NEW ZEALAND LOAN.

PRIME MINISTER EXPLAINS. DIFFICULTY IN RAISING MONEY. Per Press Association. WELLINGTON, Ma r 15. The Prime Minister, Sir Francis Bell, who was acting for the late Finance Minister, the Rt. Hon. W. F. Massey : when the 4i per cent, loan was put on the London market was interviewed by a New Zealand Times representative to-da / with regard to the comparative failure of tho loan, as indicated by London cable messages. “We have no further information and no further figures,” stated Sir Francii 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 Mr Massey, whoso financial ability was recognised, had lived, it might haw; made a difference. I don’t think that ;he reintroduction of the gold standard i l itself would affect tho position at all, lut the Bank of England hod raised the bank rate to prevent the export of gold from ,he Old Country. The effect of that is that money can only be borrowed to go into a colonial loan at 5 pec. cent, and as our loan is only at 4i per cent., though issued at 194 10s, the raising of tho bank rate has affected the amount of money available to jut into the New Zealand loan. The bank, having raised to 5 per cent, tho rate for money to put into such loans, lias made it ex iremely difficult to raise money to put into a loan at 4j per cent., even at £94 10s. 9 here is absolutely no reason, however, to suppose that New Zealand’s credit stands on r lower than before —absolutely no reason.” On being asked why the loan hed been E laced on the market at the preser t time, ir Francis Bell said: “I do not know. You must form your own conclusions.” “It would appear to be fortunate for New Zealand,” he added, “that we got in first.”

REASON FOR NON-SUCCESS. LONDON, Mi y 14. The New Zealand authorities attribute tho non-success of the loan to the el ects of tho re-introduction of the gold s andard and apprehension in connection w th the inoreased bank rate. —A. and N.Z. cable. LOAN AT A DISCOUNT. LONDON, Mey 14. Dealings began in the New Zealand loan at one and a half per centum discount. Tho underwriters are saddled with 115 per centum of the loan. —A. and N.Z. cable.