Manawatu Evening Standard. TUESDAY, MAY 8, 1928. THE £5,000,000 LOAN.

Manawatu Standard, Volume XLVIII, Issue 135, 8 May 1928, Page 6

Manawatu Evening Standard. TUESDAY, MAY 8, 1928. THE £5,000,000 LOAN.

The success of tlie latest New Zealand loan is a further mark of the confidence felt by liritish investors in the future of this Dominion and of their appreciation of its well-ordered Government. The Minister of Tina nee acted wisely in arranging l the issue at 44 per cent, to also accept offers from holders of our 4 per cent. consolidated stock of £29,000,000 which matures in November, 1929, to convert their holdings up to a limit of £5,009,000, in the aggregate, into 44 per cent, stock at the rate of £lO4 10s of the new stock for £IOO of the old. Next year is likely to prove a very difficult one with so much of the debt maturing, and there is very little likelihood that any of the consolidated stock then maturable will be available at the old 4 per cent, rate, the probabilities being that the rates of interest now offering on the London market will attract holders of the New Zealand stock to invest in securities offering a better return. It seems to be pretty generally admitted that the day for cheap money has passed, and is not likely to fall below per cent., if it goes to that level, for many years to come. This is partly the result of the heavy payments which have to "be made on account of the war indebtedness of the Allied countries and their loan for repatriation purposes and for repairing the damage inflicted on the participants on both sides. In certain quarters there has been a disposition to blame the present New Zealand Government for not arranging better for the redemption of loan moneys. The responsibility for so much of our public debt falling due during the next two or three years —£14,173,875 in the financial year, 1928-29; £43,060,890 in 1929-30 and £21,937,361 in 1930-31—does not, however, rest with the Reform Government, the loans having been consolidated during the lifetime of the continuous Liberal Administration, which held office between the years 1891 and 1912. It would be wrong, moreover, to blame that Administration for its action in that respect, as it may be accepted that the Treasurers of

the (lay made the best possible arrangements, open to them at the time, for the redemption of the stock. Much of the" latter is held by various Government departments, such as the Post Office Savings Bank, the Public Trust Office, the Government Life and Fire Insurance Offices, etc., and there will be no trouble over the renewal of the stocks held in that way, although the 4 per cent, stocks may have to lie replaced at an increased rate of interest. The Government’s chief concern will be in arranging for the conversion of the stock held abroad—in England and elsewhere. So far as conversions of the 4 per cent-, stock made in connection with the new loan are concerned, the national indebtedness will not be materially increased, the only addition being the extra £4 10s of 44 per cent, stock allotted to stockholders taking- up the new issue. Assuming that the new loan consists wholly of renewals the actual addition to the indebtedness of the country would only amount to £225,000, as £5,000,000 worth of the £29,000,000 of stock maturing on or before November, 1929, will have been provided against, the loan, however, bearing the additional

interest rate which is calculated to give cash investors a return, with redemption of the discount, over the full period of the loan of about £4 19s 8d per cent., as compared with last year’s 5 per cent, loan at £99 10s. Investors converting their 4 per cent, stock will receive a return, tixed on the same basis, of £4 10s lOd percent. The loan was made attractive, even at the lower rate of 41 per cent., which is a definite break from the 5 per cent, rate which has obtained in London for some time past, by its issue at £94 10s, cash investors thus receiving a return over the whole period, with redemption of the discount as already stated, of £4 19s 8d per cent. The position appears to be that the new loan of £5,000,000 has been over-sub-scribed and provision has also been made for redeeming £5,000,000 of the £29,000,000 falling due next year, which is indeed satisfactory.

Tiie Tofua lias arrived at Suva from Apia. \ The “Dawn” motion picture is due to arrive in New Zealand next month.

Instructions have been given by tho Borough Council for the re-numbering of tho houses in Botanical Hoad and in Lyndhurst Street. For the year ended on March 31, 1928, the Borough Council paid the sum of £3132 2s for bitumen and tar, including the freight and railage thereon.

An eight-year-old boy, M. \Y. Lawrence, residing at Island Bay, Wellington, fell out of bed at about eight o’clock last night and fractured his right forearm. He was taken to hospital. Owing to Mr Justice Ostler having to return to Wellington at tho end of tile week, there will again he a break in the local quarterly sittings of the Supreme Court until May 28, when His Honour will return to Palmerston North.

A gift of £SOO has been received by the Otago University from Airs McGill Brown and will be used to found an annual scholarship for the commerce faculty. One scholarship will bo awarded each year, and the term of each is two years.

During the summer the Woodville Anglers’ Club conducted an eeling competition which resulted in the capture of nearly 2000 eels, of which number 1818 were taken by the first three boys. The winner, Boy Christiansen, accounted for 854, the heaviest of which turned tho scales at 29Jlbs. Just before seven o’clock yesterday morning, a motor-cycle, with side-car attached, collided with a motor-van at tho corner of Willis and Ghuznee Streets, Wellington. Airs Aland Hicks, of Brooklyn, who was travelling in the side-car, sustained a fractured right leg, and injuries to the left foot. Alessrs J. A. AlcLeavey and E. C. Turner, who were summoned to act as grand jurors, failed to appear when their names- were called at the Supreme Court this morning and were fined £5. Later they appeared and tendered satisfactory explanations for their absence, and, as a result, their fines were remitted.

In the Magistrate’s Court at Wellington yesterday about 100 shopkeepers applied for exemption from the provisions of the Shops and Offices Act, and the award fixing the closing hours of shops. After it had been agreed that the applicants should be classified, according to the situation of their shops, the hearing was adjourned sine die. At tlie annual re-union of members of tho Returned Soldiers’ Association, to be held on Friday night, the opportunity'will be taken to bid farewell to Mr P. A. McHardy who intends residing in Hawke’s Bay in future. Air AlcHardy has been an enthusiastic supporter of the association and by his departure the It.S.A. suffers an irreparable loss. Christopher James White was yesterday at Hamilton committed to the Supreme- Court for sentence on three charges of breaking and entering at Hamilton and Claudelands railway stations and stealing goods and cash to a total value of nearly £4O. In a statement to the police White said that he had been out of employment for a long time and had been drinking (states a Press Association telegram). . “I would suggest that, in future, when any of our principal thoroughfares are re-surfaced with broken metal, tho surface to be given a coat of tar or some other preparation which will prevent a disintegration of the surface,” reported the borough engineer (Air J. R. Hughes) to last night’s meeting of tho council, which, on the recommendation of the works committee, adopted the suggestion. The Advertiser’s Weekly, a London publication in its issue of March 30, says:—-“Few of the British Colonies or Dominions put up such a fine piece of publicity as do the New Zealand hendquarters in the Strand, where their window displays are usually most attractive, and where Air Amery this week, on behalf of the Empire Marketing Board, formally opened the New Zealand apple season by eating an apple—but not in the window.”

“I don’t know what work can be found,” stated tho Alayor (Mr A. J. Graham) at last night’s meeting of the Borough Council when an enquiry from the Returned Soldiers’ Association was being considered as to whether the council would be prepared to. meet it in some arrangement to subsidise wages on the same basis as last /ear for the relief of discharged Footways and channelling were prety well completed, added the Mayor, but there was a possibility that something could be done in regard to Milverton Park. It was decided to advise tlie writers of the position. Figures showing that there had been no decrease in the standard of efficiency so far as the proficiency examination was concerned were quoted by the Minister of Education (Hon. R. A. Wright) when speaking at tho annual meeting last night in AVellington of the New Zealand Educational Institute. The return of the results of tho proficiency examination held in December, 1927, said the Alinister, showed that the percentage of passes had increased considerably. While the examination had been based on more modern lines, the. standard had 'remained much the same and greater uniformity had been secured. The number of candidates in 1927 was 23,943. Of those, 81.9 per cent, gained proficiency certificates, 2.6 gained endorsed certificates of competency, 9.5 certificates of competency, and 7.9 failed. In the previous year the percentage of passes was 77, the number of candidates being 23,231.