LOAN LORE.

Manawatu Times, Volume LXV, Issue 1883, 31 March 1913, Page 7

LOAN LORE.

(By Hon. James Allen.) Under the date 23nd February, the London correpondent of the Post writes: "Discussing the New Zealand loan with me this morning, the Hon. James Allen said: 'lt has gone off as favourably as we could possibly have expected. It is true that the underwriters have to take up a considerable portion of this issue, but ;that is also true of all loans nowadays. They have really had to take up less than they anticipated. They expected to be landed with about 90 per cent., instead of which they are only holding 80 per cent. It is a very good loan both as regards the yield to the investor and as regards the price which we are having to pay. It will cost us, including redemption at the longest date at which we can redeem—i.e., 1963—about £4 us 6d per cent. That is the cheapest we have obtained for some time. In 1910 we issued £1,850,000 of five year bonds at 3% per cent., and the total cost, including redemption, was £4 5s 2d—just 4d less than the present loan. In November, 1910, we raised the £5,000,000 3per cent, loan for four years, and the cost of that, including redemption, worked out at £4 8s lOd Then in June last year we raised £4,500,000 for two years at 3hi per cent., and the cost, including redemption, works out at £5 Is 4d. The only criticism that can be levelled against this loan is the long period. The money has not to be repaid for thirty years, but when it comes to redeeming we are free of the responsibility of facing a bad market, and we know where we are for a considerable period. I would like to have got it at 3j£ per cent., but that is quite out of the question in the present state of the market. Considering the conditions the issue is very satisfactory. The brokers also are satisfied."