BRITISH WAR LOAN

New Zealand Herald, Volume LXXVII, Issue 23602, 11 March 1940, Page 3

BRITISH WAR LOAN

FAVOURABLE RECEPTION KEEPING INTEREST RATE LOW British Wireless LONDON. March 8 The Economist, commenting on the £,100,000,000 loan, says the verdict regarding it cannot be other than wholly favourable. The happiest feature of the issue, taken together with the terms of Sir John Simon's announcement, is that it leaves very little room for doubt that the Government appreciates the importance of 3 per cent. In the present condition of the market it would have been possible to issue a per cent loan for a considerably shorter period, which would have left open the question oil what rate of interest was appropriate to long-term borrowing. By offering 3J per cent the Government could have raised money on a perpetual basis, since the 3£ per cent war loan is virtually at par, but that would have acted as a confession that there was no further possibility of reducing the rate of interest. As it is, the new issue can be taken as a very strong hint that the Government has no intention of paying more than 3 per cent, for its money, and that it intends to borrow for as long a period as can bo secured on those terms. The stage can bo set for a 3 per cent loan with a life of 25 to 30 years.

EFFECT ON STOCK MARKETS RECENT GAINS CONSOLIDATED LONDON. March 8 Sir John Simon's announcement of the war loan dominated the stock markets and consolidated recent big gilt-edged gains. It also caused interest to bo attracted to other investment sections and sound Dominion loans are likely to benefit as a result of small investors and trust dependents facing the prospect of lower yields and a higher cost of living.

VOLUNTARY SAVINGS SUCCESS OF BRITISH PLAN (Received March 10, 7.42 p.m.) British Wireless LONDON, March 9 Strong criticism was expressed in a speech bv Sir Robert Kindersley, president of the National Savings Committee, of the plan advanced by Dr. Maynard Keynes for the compulsory saving of a percentage of earnings during the war, returnable to the individual for spending after the war. Sir Robert Kindersley said that voluntary effort was going to be the dominating factor in the spirit of the people throughout the war, and this will offer everyone the chance of expressing by self-denial and lending to the State their belief in the cause for which we are fighting. The Times, while of the opinion that Dr. Keynes' scheme has obvious advantages as well as dangers*.says: "At the moment the voluntary system is giving magnificent results. Dr. Keynes estimated that his scheme would produce in a year about £400,000.000 sterling over and above the yield of income tax and surtax. But already £100,000,000 has been raised by the sale of savings certificates and defence bonds and the issue of the new 3 per cent loan of £300.000.000 is assured of success. Sir Robert Kindersley believes that a network of savings groups covering the whole country can be created to keep up the flow of small subscriptions and, no doubt, the first appeal to the bigger investor will not exhaust his capacity to subscribe.

SHAREMARKET INDICES New York Dow Jones' averages (1926 equals 100) and turnover on the New York Stock Exchange are as follows:

Highest in 1939. —]Railroads, 35.90 (September 27); industrials, 151.22 (September 12). Lowesit in 1939: Railroads, 24.15 (April 18): industrials. 121.4 (April 8). London Stock indices compiled by the Financial Times, London, arc as follows (October 15, 1926, equals 100): —

FOREIGN EXCHANGE RATES LONDON, March 8 Foreign exchange rates are: —New York (dollar), 4.00jj; Montreal (dollar), 4.45; Paris (franc), 1761; Amsterdam (gr.), 7.555; Brussels (belga), 23.725; Milan (lire), 77.50; Hongkong (dollar), 14 15-16 d; Shanghai (dollar), 4 5-32; Stockholm (kr.), 16.90; Copenhagen (kr.), 20.25; Batavia (fl.), 7.44 to 7.54; Oslo (kr.), 17.70; Geneva (fr.), 17.90; Bombay (rupee), 18d; Kobe (yen), 14 19-64 d; Buenos Aires (pes.), 17.075. SYDNEY STOCK EXCHANGE SYDNEY, March 9 Share dealing to-day included: —

CALL AND DIVIDEND LIST

Shares are quoted ex dividend on the business day after the closing of transfer books for the payment of the dividend.

E 3S k ■ 3 I i

Govt. Home IndusGold securities rails trials mines March 1 .. 309.9 54.1 301.0 3 95.9 March 4 .. 109.8 54.1 301.1 195.1 March o .. 310.0 51.0 300.0 3.95.4 March 6 .. 110.1 54.9 100.0 395.3 March 7 .. 309.7 50.1 300.2 395.3 March 8 .. 309.7 5G.5 100.1 394.8

A.C.I. £ 13 d 1..: 1 1« 6 Associated Newspapers fi 0 15 ioy a British Tobacco 2 7 9 Broken Hill Pty. „ > ») 2 7 3 Dunlop-Pcrdriau .1 0 in 9 Electrolytic Zinc 2 iff G Ditto (pref.) .. t !..• 2 17 3

Dividends— Due Credit Invest. Corp.—int., pf., 6V a p.c. p.a., ord., 8 p.c. p.a. .. Now Flee. Zinc—int., pf. nmi ord., 6 p.c. Mar. 15 W. H. Carpenter, int.; 5 p.c. .. Mar. 15 Nat. Mortarago—final, 2% p.c., stff. Mar. 15 Broken Hill South—quarterly, Gd Mar. 15 Huddart - Parker—filial, pref., 3 p.c.; ord., 7 p.c. Mar. 10 Milburn Liino—int., 3 3 /, p.c. Mar. IS Gre.v River—4d Mar. 21 D. W. Chandler —final, pf., 3 p.c. Mar. 21 Bk. A'asia—final, 4/6 nt(*., less tax Mar. 29 Bond's Hosiery—10 p.c. . . Mar. 2!) North Broken Hill—quarterly, 6d Mar. 29 Dunlop-Perdriau—int., pf., 5 p.c.; ord., 3% p.c. Mar. 30 Cox. Bros. —int., pf., 3% p.c.; ord., OVa p.c. Mar. 30 British Tobacco—quarterly. 2 p.c. Mar. 30 Hume Pipe—int., pf., 3% p.c.; ord.. 3 p.c. Mar. 30 Morris Hedstrom—final, half-yearly pf., 3 p.c. (Fijian currency) Mar. 30 Beath Co. —int., crd'. pf., 2 l / a p.c. Apl. 1 Felt and Textiles—int., pf., 3 p.c.; ord., 5 p.c. Milne and Choyce—int., pref., 3 Apl. 1 P.c.; B pf., 3Va P-c.; ord. and deb., 3 p.c. .. Apl. 1 Knniori—second, Is Apl. o Howard Smith—final, ord., 3 p.c. Apl. 3 Yarra Falls—int.. Is Apl. 4 Wwths (N.Z.) —int., pf., 4% p.c. Apl. 15 W'ths (Syd.)—final, 11 % p.c. .. Apl. 15 W'ths (W.A.) —final, 12% p.c.. bonus 2Vi p.c. Apl. 15 W'ths (Vic.) —pf, hlf.-yr., 3V 3 p.c. Apl. 15 Calls— A.C.I. —new, 5s Mar. 31