NEW ZEALAND LOAN.

Manawatu Standard, Volume XLV, Issue 141, 19 May 1925, Page 5

NEW ZEALAND LOAN.

WHAT MONEY IS REQUIRED FOR. Per Press Association. WELLINGTON, May 18. The Hon. W. Nosworthy, Ministei of Finance, in commenting on the present loan issue, made the following statement: “The loan of £7,000,000 just raised in London, as already announced, is at 4J per cent, at £94 10s, to mature in 1945. After allowing for expenses, including stamp duty and redemption, the annual cost per cent, will be £5 2s 4d, as compared with £5 Is 6d for the 1924 loan with same charges, the difference being lOd per cent. Jn view of the various circumstances surrounding the issue, the terms must bo regarded as satisfactory, the London market generally not being as favourable this year as it was twelve months ago, as is indicated by the increased rates offered for Imperial Treasury bills in the last few months, now as high as £4 10s 6d, as compared with £2 18s twelve months ago. In addition, the recent increase in the Bank of England fate and the notable cliango made by the Imperial Government regarding the gold standard had a prejudicial effect on the absorption of stock by the general investor. It is doubtful, from advices reeeived, whether the Conditions are likely to improve for some time and the terms on which we have received the loan will probably not be disadvantageous compared with sub sequent issues to other borrowers iri the future. The bulk of the loan, it may be mentioned, is for interestbearing and directly reproductive purposes, such as railway construction, additions and improvements to telegraphs, the extension of hydro-elec-tricitv and State advances to settlers and workers.”