7½ PER CENT. BONDS.

New Zealand Herald, Volume LIX, Issue 18040, 15 March 1922, Page 9

7½ PER CENT. BONDS.

WHY THEY ARE BEING OFFERED-

(Published by Arrangement.)

A HELPFFL AND PROFITABLE

INVESTMENT.

We have heard so often that the interests of New Zealand centre in the welfare of it 6 primary producers that it amounts almost to tedious repetition to again refer to the matter. But the present is a time when the truth of this old saying i» coming home to everybody with some force, and assisting the dairy farmer, until the world's markets reopen to him on a satisfactory basis, is a matter thai, concerns us all. The real trouble with the dairy farmer at present is that while his securities are ample and sound, he has little ready money for the purchase of seed, manures, household requirement*, and other necessities. The Farmers' Union Trading Company has already given increased assistance amounting to £38,000, but rea* Using that much more must be done in this direction, it is offering the balance of its bond issue for subscription. The bonds are for £25, £50 and £100, and are rei>ayable in three or seven years at the purchaser's option. Being bearer bonds they can be readily transferred like bank' notes. Interest of 7J per cent., free of income tax, is payable halfyearly, without deduction for exchange on due date at any branch in the Dominion of the Bank of New Zea'and, or at the company's head office, Hobson Street, Auckland. Security Protecting Bondholders. Bondholders rank in priority to a[l shareholders, both preference and ordi nary, and as the subscribed capital of the company is £587,040, or more than double the full issue of the company s bonds, the margin is 6o great that these bonds might well be described as gilt-edged security. Now that interest rates are falling owing to the easier tone of the money market, more than likely bonds at 7$ per cent., free of income tax, will, in the near future, be selling at a premium. Applications will be accepted free of exchange at any branch of the Bank of New Zealand, or at any of the company's 30 branches, or may be posted direct to the Farmers' Union Trading Company, Limited, Hobson Street, Auckland. Prospectus giving full particulars of these bonds obtainable at any of the above addresses.