AUSTRALASIAN LOANS.

New Zealand Herald, Volume LI, Issue 15520, 30 January 1914, Page 7

AUSTRALASIAN LOANS.

'. J - \ ~-y)" y : : AUCKLAND . CITY' ISSUE. v EASY- MONEY-MARKET! '• v v y*; ~ * * '• ,>• 'V. . . • RUSH • TO" SUBSCRIBE. • • v. v ———— : V ' ' • \ ' - . By Telegraph.— Association— - (Received January 29, 10.35 p.m.! * ' London, January 29. >*. The ' New Zealand ; Government is' issuing - a 4 "per cent, loan of £4,500,000' atflOOi, repayable in 1924.' The' New Zealand loan carries with it the option to convert it immediately into stock carrying 4, per cent, interest at 102,' or later at 101., •" .. * . ,/ / ' • <■' The City of Auckland is issuing £124,500 worth, of debentures at par, the rate, of v interest being Ah per cent- ' The - loan has been oversubscribed." ' ' ! The West Australian loan has also been oversubscribed.' NEEDS OF THE DOM IN* ON. . STATEMENT JBY ' MR. MASSEY. Wellington, Thursday. Regarding the proposed New Zealand Government' loan mentioned, above, .the Right Hon. Mr. Massey, Prime Minister, in an interview, said: "We have tb raise an - unusually large • sum of . money this rear, by reason-of the fact that .so many short-dated debentures fell due between now and December 31.' We have, of course, to raise s a certain amount of money for public works and for the Lending Departments, ■ and < these facts, taken together, necessitate our going -on the London market for a very much larger sum than usual. ..., ■; s ; "Our agents advise that' the credit of the Dominion stands well" at . present, and, in -view .of that fact, and seeing that there is ■; an • appreciable ;• drop in - the price of ■money at Home, it is understood that there will be ao difficulty in placing the loan. The greater part of the amount' raised will be required for ordinary development purposes, arid for the,. requirements of the Lending Departments. ~, , ' • / '■ z • "We shall i require anotber. loan before ,the end of the year: to enable us to redeem a large •- mount •of short-dated -debentures,' which are falling" due. , It may •be added that, though. the borrowing seems very heavy, the net increase,of our indebtedness for the year will not be above the average." , . ' y _ ■The Prime Minister went, on ' to give particulars of the short-dated loans which have to be- met, 31, which are as follows': —142,600"floated ■by ; the Ward Gorernmeht-{unconyerted portion of the. five million loan),- December 31,. 1910 ; £4,500,000- floated yby the Mackenzie Government, June 7,- 1912; total, £7,642,600. In addition, about £300,000 is falling due' in Australia this year. • ' .tkiV f. p • ■ The Prime . Minister added that considerable, sums aref : fallitig. due in -New but the -Government anticipates no diffi-! culty; in dealing V* with, t the .debentures, which are';;;; locally = held. F.He . went on rto - quote, ) ' by,' way;;<.bf i: ; coinpaii*°n». the Australasian 4 ;per loans which' have bten raised ; during tie ' past year- 'or stK^Victoria^y : June, • /1913, £3,000,000 at 98 South Australia, July, 1913,' £1,000,000 "at 97; NeW ; South Wales, August 1913; £1,500,000 at 975; Victoria, September, .1913, £2,000,000 at : 98; West Australia, November, ' 1913, £1,000,000 at 97; New Zealand, October, 19i3,'£3,500,000 at 98$; New South Wales,* January, 1914, £3,000,000 at 9&; .Victoria;'• January, 1914, i £1,000, at 97. • ' ; : v " " V.;v " r ".•? ? v ■■■ V ; '« . FAVOURABLE OPPORTUNITY. The City of Auckland; £124,500 loan referred, to above >, is.'the*balance; of the ; electric loan of £225',000, authorised some four years ago.* The.pity. : Council has. for some I time. been waiting ;for a • favourable .oppor- ] tunity to place'it on 1 the London market. '.Some 10- days , ago : the ; bank made" the council" an pr, 'which they accepted,. as the money is needed within the next few j months.-• The council does not anticipate. . having to go, to. the . London -market . again' for;at least 12 months. #*/». ..., ' ~