THE NEW ZEALAND LOAN.

New Zealand Herald, Volume XL, Issue 12241, 9 April 1903, Page 5

THE NEW ZEALAND LOAN.

THE AMOUNT REALISED. [BY TELEGRAPH.OWN CORRESPONDENT.] Wellington, Wednesday. The actual amount realised by the colony from the flotation of the recent loan in London has been variously stated, and it is generally admitted that the figures given by the Colonial Treasurer are erroneous. Mr. Jno. Duthie, M.H.R., writing in tonight's Post, puts the matter very clearly. He points out that by advertisement in the financial newspapers it was issued at a minimum of £94 10s, payable by a deposit of £5 with application on February 19, followed by £19 10s on February 27, £20 on April 21, £25 on June 26, and ti'do on July 28. By a prominent Headline it was set out ir the advertisement that a. " first dividend, being a full six months' interest, was payable on April 1," so that while on that date interest was to be paid from October 1 of last year, only the two small payments in February had to be made by the subscribers. The subscription to the loan was nominal, and so it had to be taken up by the underwriter. In determining the result to the colony, he states that there has first to be deducted the unearned interest which the taxpayer on the Ist inst. has already had to make good. This amounted to 30s, less Is 4d, the value of interest on the calls amounting to £24 10s, which the colony had received towards the end of February, and further interest has to be deducted on the April, June, and July calls until paid, these together amounting to 8s lid. The amounts of interest, 28s 8d and 8s lid, being concessions for which the colony got no value, leave, when deducted, the neb total as contributed by subscribers at £92 12s sd. From this amount there has still further to be deducted one per cent., the underwriters' commission, and also If per cent., the approximate rate for sundry expenses, leaving the net proceeds of the loan at £89 17s sd. The item of If per cent, is the only one open to challenge. It may seem high, since of old such expenses' seldom exceeded three-quarter per cent., but of late such charges have run up much higher than in the case of the loan raised in December, 1901. So far as it can be traced without special information, the item seems to have amounted to £1 16s 8d per cent., hence If per cent, is probably a moderate estimate, and £89 17s 5d would appear to be the full amount the colony realised per £100 from the recent loan.