FIVE PER CENT BONDS.

New Zealand Herald, Volume LIV, Issue 16620, 17 August 1917, Page 4

FIVE PER CENT BONDS.

It appears from the Government's published information on the war loan that Sir Joseph Ward has made a half-hearted concession to those who urged an alternative issue to the bond which is free of income tax and carries 4$ per cent, interest. On the eve of the flotation of the loan he announced that for the convenience of " people of small means" special arrangements were being made for the issue of 5 per cent, bonds. He stated that persons applying for those bonds would have to sign a declaration that they are not payers of income tax. There is no reference on the application form to such a declaration, and it is probably as well that it has been omitted, for the conditions of the loan are such that " people of small means" will mostly be compelled to look on and envy those who can fulfil them. rho lowest denomination of bond is £100, which has to be paid in one sum on application before September 3 next. There is one condition attached which is that no person can hold more than £500 worth of these bonds, though the declaration is so framed as to place no limit to the number of bonds the same person may hold in the per cent. loan. The period of this portion of the loan is ten years, and its chief advantage would appear to be that it gives a man of means an opportunity of investing a limited portion of his capita! for a short term. As an opening for small investments it does not merit the advertisement which Sir Joseph Ward gave it in his speech, and as an alternative to the free of income tax issue it is halting and unsatisfactory.