NATIONAL DEFENCE

Nelson Evening Mail, Volume LXXI, 28 April 1937, Page 5

NATIONAL DEFENCE

TERM OF £100,000,000 LOAN | SPECIAL ARRANGEMENTS I OR SMALL INVESTORS CHANCELLOR'S STATEMENT [British OHicinl Wireless] RUGBY, 20th April. The terms of a £100.000.001) issue ol j national defence bonds to be made on] Thursday were announced at House of Commons question time by the Chancellor of the Exchequer, who explained in the general interest of local authorities and other borrowers that it was desirable that the market should: know his intentions in respect to borrowing under the recent Defence Loans Act. Mr Neville Chamberlain said it was] proposed to advertise on Wednesday morning details of an issue to be sold; on Thursday of a 2 i, per cent, national; defence loan of £100,000,000 at 99£. It] would be a short- to medium-term j security, redeemable before the end of 1948 by annual drawings at par of not less than 20 per cent, of the amount! of the loan, the first drawing being] in the autumn of 1944. Subscriptions, would be payable by instalments over three months, and the first dividend would be of 13s on 15th September,] 1937. He intimated that special arrange-] ments would be made for the small, investor through the Post Office and, trustee savings banks. The proceeds of the issue, until re-: quired for financing the defence pro-] gramme, would be available for re-J ducing the floating debt and would in any case cover the estimated,- expendi-j ture of £80.000,000 to be met this year]

from borrowed moneys. The Chancellor reminded Mr C. R. Attlee, Leader of the Labour Opposition, in reference to the discrepancy between the figures of the loan and of the appropriation in aid provided for in the estimates, that the Government would issue bonds or loans just as the market might appear to be favourable.