THE PRICE OF MONEY.

New Zealand Herald, Volume LX, Issue 18459, 24 July 1923, Page 8

THE PRICE OF MONEY.

NEW SOUTH WALES LOANS. RATE of interest COMPUTED. IBr TKIiEGRAOE.—OWN CORRESPONDENT. ] : WELLINGTON. Monday. Coinciding tvjih the calling at Auckland of Sir George Fuller, Premier of. New South Wales, !<ia his return to that State from London, ihsre appeared in the Auckland papers soaVe reference to the, success of New South Wales loans in London. It was stated that • the recent is&ue of a £6,000,000 loan was effected nt 4£ per cent., and so it was, but thci essential, the price of issue, £94, , was . not mentioned. "That makes all the difference," remarked a high financial authority when speaking to-day on Dominion loans floated in London. "The cost, in interest to New South Wales of that loan will be £4 19s 3d, or nearly 5 per cent. The previous New South Wales loan for £4,000,000, issued it £98 in January, returned to investors interest at '5£ - per cent. The Now Zealand Government <£4,000,000 loan in May last was floated at ;an issue price of £90, at a rate of interest of 4 per cent-., and the Prime Minister could have accepted .the rate of , £98 at 4£ per cent., but decided to adopt the 4 per cent, rate with a view ■to establishing that' basis. :■ "What has no doubt influenced investors in takincr up the £6,000.000 Joan for New South Wales 1 is the fact that, with a change of Government in that- State, there has come the abandonment of the many wild-cat schemes of .their predecessors in power. This would mpke a substantial difference in the recept'on the loan would have in the London money market."