GOOD TIME FOR LOANS.

New Zealand Herald, Volume LIX, Issue 18021, 21 February 1922, Page 7

GOOD TIME FOR LOANS.

DOMINION'S REQUIREMENTS. [BY TKLEOHAPH.-OWN COKRESPONDENT.] WELLINGTON, Monday.

Financial authbrities in Wellington do not regard the boom in "pit edged stocks on the London Stock E*W «.an indication of improving conditions they interpret it to mean that owing to high taxation and other restraint? on trade, expansion funds are bo.ng diverted from industries into Government securities of evcrv description. They pointed out to-day, however, that there was one feature of the present state of the London money market Wat had an important bearing upon New Zealand s present financial position. This Dominion was generally understood to be in great need of ready money for Government and local body purposes. Now was its chance. The market was more favourable to the borrower than it had been for a long time past. If the Government ventured in with a large loan for distribution among local bodies, and especially tor speedy development of the _ hydroelectric enterprise of the Dominion, it could hardly do so at a better time. Local body individual loans with Government guarantee should alßo have a good chance of success in London at the present time. . , . The Prime Minister indicated during the recent session of Parliament that he did not intend to go upon the London money market again before the end of the current financial year. He took aiithority during the session to raise a Public Works loan of £5,000,000, and he has unexpired authorities for hydro-electric and other special loans to the extent of £10.000,000 or more. It is possible that with cheaper money nfferinc in London he will ask for the' £5,000,000 in March or April. This money will assist materially to tide over the unemployment difficulty during the winter months. It is being remarked in Wellington that public interest in the 44 per cent, free of income tax stock and bonds, maturing in 1938, 1939, and 1941. is increasing, and tho general trend of the prices of these securities since the new year is upward. When the Wellington exchange opened on January 9, the price of 1938 stock and bonds (which may bo taken as a basis) was £85 I2g 6d, buyers. To-day Buyers of inscribed stock are £88 ss, and of bonds £88 7s 6d, and sellers £88 7s 6d.