OPERATING IN PREVIOUS ISSUES.

New Zealand Herald, Volume LV, Issue 16824, 15 April 1918, Page 7

OPERATING IN PREVIOUS ISSUES.

VIEWS OF SHAREBROKERS. Tho statement made, by Sir Joseph Ward, when introducing the Finance Bill ' in the House of Representatives, to the! effect that persons operating in war bonds I of a previous loan issue would not have! such bonds considered as contributions to! the loan when the compulsory provision | of the Bill were being administered, were I discussed by members of the Auckland j Stock Exchange on Saturday. Mr. U.: A. Buttle said that if tho 'Minister for ' Finance had spoken as reported, and if , he carried such a proposal into effect, ho : would close a channel of support to future loan issues. A considerable number of loyal citizens, who had not command of a large amount of capital, had borrowed! money from the banks at 5J per cent, in- j tercst in order to put it into the loan at j 4J per cent., with the object of helping! to ensure a full subscription to the loan. These people could not afford to have their money invested for a lengthy period, but were willing to make some sacrifice to help the Government. Havjng accomplished that object, they were surely entitled to dispose of the bonds as opportunity occurred. If a penalty suck as was suggested by the Minister for Finance i were imposed, on dealing in the bonds i people who had borrowed money to take up war bonds would in future cut down their efforts, and only invest the minimum amount, as operating in the bonds would cease, and they could not afford to be overloaded with them for the full period of the loan. He had no sympathy with the wealthy man who deliberately waited for the opportunity of purchasing bonds at a discount, but the loyal men who were doing more than their share should not be penalised. Mr. W. Walker, chairman of the Exchange, said he agreed with Mr. Buftle's remarks. Instances had come under his notice of people who had sold their holdings in a former issue at some sacrifice, in order to invest as much as possible in the present loan. He thought that sort of thing should be encouraged by the Government, instead of being penalised. Moreover, if the statement were correct that the Minister intended to give the Commissioner of Taxes power to deter- ! mine the amount of war loan that each i individual should take up, he considered ' such provision was putting too much j power into the hands of one man, and he - hoped to see some modification of the proposal before the Bill was finally passed.