MATURING PUBLIC DEBT

New Zealand Herald, Volume LXIX, Issue 21113, 22 February 1932, Page 5

MATURING PUBLIC DEBT

OVER £1,000,000 THIS MONTH?

RENEWAL OFFER TO HOLDERS.

FIVE PER CENT. FOR SIX YEARS.

Over £1,000,000 of public debt, bearing interest at per cent., matured on February 15. and holders of the stock were invited to renew the- investment for a further period to September 1, 1937 or 5 years 7£ months —with interest at 5 per cent., payable on March 1 and September 1. The Treasury circular stated that, applications for reinvestment with continuity of interest at 5 per cent, from the date of maturity would be accepted up to April 15. No reason was given for proposing the irregular period for the new stock, or for the alteration of the interest dates, which were previously August 15 and February 15. It is understood that, the Treasury has had to find a considerable amount of cash to redeem stock presented for repayment on the due date. The maturing stock comprised amounts raised for the following purposes:—Stats advances, £623,680; public work*, £467,270; education buildings, £2770; land for settlement, £19,000; and war expenses, £900; a total of £1,113,620. In addition, stock to the amount of £81,590 matured on February 1 and 4. This amount comprised various small issues at rates varying from to 6 per cent. The total maturities in February were £1,195,210. Next month, stock amounting to £857,066 will fall due for repayment. Nearly the whole of this was issued under the Land for. Settlements A c t—£B4l,o66 at 4 per cent., and £13,000 at per cent., and both these blocks mature on March 1. Public debt maturing in the 1932-33 financial year amounts to £5,613.013, of which £393,850 is domiciled in Australia and the remainder "in New Zealand. In 1933-34, maturing debt will total £22.193,314, comprising £5.012,900 in London, £52,000 in Australia and £17,128,414 in New Zealand. In view of the fact that the Government is now entering into fresh contracts at 5 per cent., it is interesting that of the debt outstanding on March 31, 1931, amounting to £276,033,3Jj8, interest exceeding 5 per cent, was payable on only £46.938,359. Large block§ of the debt, bear interest at 5, 4j and 4 per cent., and there are £19,770,1.53 at - 3£ and £9,662,791 at 3 per cent.