DEFENCE LOAN

New Zealand Herald, Volume LXXIV, Issue 22714, 28 April 1937, Page 11

DEFENCE LOAN

TOTAL OF £100,000,000 CHANCELLOR'S STATEMENT SURPRISE CAUSED ON MARKET By Telegraph—Press Association —Copyright LONDON, April 26 The Chancellor of the Exchequer, Mr. Neville Chamberlain, announced to-day in the House of Commons that the Government would float a defence loan of £100,000,000. The interest would be 2|- per cent, and the issue price £99 10s, maturing in 1948. The loan would be issued on Thursday. The announcement took the market by surprise. Details arrived just before the closing of the London Stock Exchange. The City correspondent of the Australian Associated Press says he learns that the reaction will be favourable. MEDIUM TERM ISSUE REDUCING FLOATING DEBT HELP FOR SMALL INVESTOR British Wireless RUGBY. April 26 The Chancellor of the Exchequer, Mr. Neville Chamberlain, explained to-day that in the general interest of local authorities and other borrowers it was desirable that the market should know his intentions in respect to borrowing under the recent Defence Loans Act. The issue would be for a short to medium term, with the security redeemable before the end of 1948 by annual drawings at par of not less than 20 per cent of the amount of the loan, the first drawing to be in the autumn of 1944. Special arrangements would be made for the small investor through the Post Office and trustee savings banks. The proceeds of the issue, until required for financing the defence programme, would be available for reducing the floating debt and would in any case cover the estimated expenditure of £80.000,000 to be met this year from borrowed moneys. The Chancellor informed Major C. R. Attlee, Leader of the Opposition, that the Government would issue bonds or loans as the market might appear to be favourable.