DOMINION WAR LOAN.

New Zealand Herald, Volume LIII, Issue 16309, 16 August 1916, Page 9

DOMINION WAR LOAN.

AUCKLAND SUBSCRIPTIONS.

TWO INSURANCE COMPANIES.

HUNDRED THOUSAND EACH.

The interest of the people of Auckland in the Dominion war loan of £8,000,000 is increasing. Business at the special war loan department, at the Chief Post Office, was very brisk yesterday.

The main feature of interest in connection with the loan yesterday was the decision of the directors of the two insurance companies, having their headquarters in Auckland, to subscribe large amounts. The directors of the New Zealand Insurance Company, and of the South British insurance Company, each decided to subscribe £100,000. The directors of the Northern Roller Milling Company resolved to take up £5000 worth of war bonds.

The activity of the small investor was in evidence at the post office all day. The business has increased so rapidly that the services of two officials are now required to meet the demand for both bonds and certificates. Applications for both bonds and certificates will close on Monday next.

Referring to the doubts expressed by many small investors as to the possibility of obtaining a cash equivalent for the value of the certificates, in cases of necessity, Mr. W. B. Colbeck, chairman of the Auckland Stock Exchange, stated yesterday that it would be the endeavour of the stock exchanges throughout the Dominion to make the certificates negotiable at their full value. " The war bonds," added Mr. Colbeck, "will of course be negotiable on the exchanges. It is interesting to note that the bonds issued in connection with the previous war loan of £2.000,000 were quoted at a premium of at least 10s prior to the issue of the present loan."

HARBOUR BOARD SINKING FUNDS.

A PROPOSAL NEGATIVED.

The secretary of the Auckland Harbour Board, Mr. H. B. Burnett, brought before the board yesterday the question of so extending the powers of its Sinking Fund Commissioners as to enable them to invest part of the funds in the war loan. His memorandum on the subject pointed out that in December, 1911, the commissioners asked that their range of investments, which was limited to first-class mortgages on freehold security, should be extended to include Government and local bodv debentures, but the proposal was not agreed to. In view of the present needs of the Government for monev for war purposes, and the higher rate of interest now obtainable, he suggested that the time had come for the board to review the position.

The chairman, Mr. H. D. Heather, moved that the secretary's report be adopted, so as to enable the board to consider the question of enabling the commissioners to invest their funds in war bonds.

Mr. A. J. Entrican did not think the board was called upon to allow the investment of its sinking funds in war bonds. The board would not, in such case, receive the benefit of the exemption from income tax whioh private investors had, and which was one of the features that made war bonds attractive. All sinking funds should bring in the highest possible rate of interest. The sooner the board got its loans extinguished the sooner it would be able to undertake fresh works. Besides, it was important not to sap the supply of money for loan on first mortgage, in order to help people in building homes and improving their farms. In answer to a question, the secretary stated that the amount paid annually by the board into its sinking funds was about £11.000.

The motion was negatived on the voices.

INTEREST ON INSTALMENTS.

ALTERATION OF TERMS DESIRED.

[by telegraph. --own- correspondent.]

DUXEDIN, Tuesday. The Dunedin Chamber of Commerce to-

day decided to send the following resolution to the Minister for Finance —" It has been impressed upon the chamber by trustees eager to invest funds in the war loan that they are precluded from doing so by reason of the terms of the prosl pectus giving interest only upon 25 per ! cent, lodgments from the prospectus I dates. The full amount will bp received 1 on August 21, but interest from Sept-ember 1 is then only payable on one-quarter of : the sum invested. This is not equitable, and we fear the loan may be jeopardised unless the lender is given the right to prepay instalments upon which interest runs "from the date of prepayment. We suggest that moneys ought to be received i at any time before February 1, 1917, and | that interest, to be paid on the full amount received, commence from the date !of receipt. Can this alteration be made?"

INVESTMENT BY WORKERS.

PROPOSAL IN WESTLAND.

[BY TELEGRAPH.PRESS ASSOCIATION.]

HOKITIKA, Tuesday.

The chairman of the. Westland County Council, Mr. J. A. Murdoch, is submitting a proposal to the staff to arrange to take up any amount required in war loan certificates, the staff to repay at the ;ate of 5 per cent, a month on the capital sum for 16 month?, certificates to be held by the council till the principal advance is paid off, when certificates will become the propertv of the. contributor. It is suggested that this would be a helpful way of placing a large amount of the loan in the Dominion if it were generally taken up by local bodies to assist employees. HOUSE-TO-HOUSE CANVASS. SUGGESTION IN NELSON. [FIT TELEGRAPH. — PRESS ASSOCIATION.] KELSON. Tuesday. A proposal is made here that a houseto house canvass for the war loan should he made, and that meetings of employees be addressed urging them to subscribe. APPLICATIONS IN WELLINGTON. RESPONSE BY SMALL INVESTORS. iBV TELEGRAPH.— PRESS ASSOCIATION".] WELLINGTON. Tuesday. The Wellington post office reports a good response by small investors to the invitation to subscribe to the war loan. Since Friday, as details of the loan became better known, each day's record of business has shown an increase. Generally speaking, the small investor, that is up to £50 for the five year period, makes application to the post office, but the banks also report encouraging inquiries on the part of clients, both for large and small amounts.

RAILWAYMEN'S INVESTMENT.

SUM OF £1000 FROM FUNDS. [BT TKLEGRAPH. —PRESS ASSOCIATION.] WELLINGTON. Tuesday. The executive council of the Amalgamated Society of Railwaymen has decided to invest £1000 of the society's funds in the war loan.