LOANS IN LONDON

New Zealand Herald, Volume 81, Issue 25084, 23 December 1944, Page 8

LOANS IN LONDON

MATURITY NEXT YEAR TWO DOMINION ISSUES REPAYMENT OR CONVERSION (Bpeci.il Correspondent) > Kecd 10.4(1 p.m.) LONDON. Dec £2 Little attention has so far been attracted by two New Zealand loans which have to be repaid next year, says the Financial News. They are £7,500,000 of 4i per cent stock and £0,500,000 of 3 per cent stock. The market is wondering'what the procedure will lie, says the financial News. It adds:' "When attempting to assess the prospects of conversion or repayment, one naturally thinks first of .the amount of cash there is in hand Now Zealand overseas assets total about £35,000,000, a rise of £7,500,000 over the year. Assuming, which seems to be fair enough, that the bulk of this consists of sterling, there would be plenty of money lor the cash payment of both issues. . "All the same, there are a number of possible reasons why cash repayment should not be undertaken. Ihe present level of sterling balances is due to abnormal wartime circumstances. We have made bulk purchases of New Aea land's primary produce, but New Zealand has been unable to get many ot our goods in return. . . "After the war, the Dominion may require much of the money for restocking purposes. Again, financial arrangements between this country and New Zealand have not reached finality, in November it was mentioned in ttio House of Commons that the payment ot sums due to the United Kingdom of up to £18.000.000 might be deferred for subsequent adjustment." It, is suggested bv the iMuancial N° ws that conversion is th" more probable course oi action. Tito deferred payment, of up to £18,000,000 comes under the Memornudum *of Security for war expenses. As part of the trade agreement coneluded with Britain, the Prime Minister announced on August 3: The United Kingdom Government has also agreed to payments being suspended under our Memorandum of Security up to an amount of £18,000,000 sterling, until after the war when the question of payment is to be reconsidered." New Zealand loans falling duo in London next year are as follows, the amounts being given in New Zealand currency:—£3,soo.37s, 3.| per cent, due January 1; £"219,375. 5 per cent, due February 15; £9,476,134, 4| per cent, due March 1; £12.071,600, 3 per cent, due April 1; £2,613,636, 4.J per cent, due December 1. Also, on January 1 of 1946, a loan of £16,107.638, bearing interest at 5 per cent, falls duo. There are no further maturities in London until September, 1947. Of the loan falling due on January 1 —that is, on Monday week —one-hall was disposed of on July 1 last, partly bv repayment and partly by conversion. No douot provision has been made for dealing with the remainder on January 1. Those are the last two instalments i)i a loan of £20.000,000, for the repayment of which by instalments the Minister of Finance made special arrangements six years ago. MR NASH'S COMMENT MATTER BEING CONSIDERED (p,A.) WELLINGTON, Friday The Minister of Finance. Mr Nash, in a statement tonight, said the subject referred to in the London cablegram giving comment by the Financial News had been under consideration, and negotiation for some time, but it was unlikely that anv further statement would be made untif arrangements in connection with the loans had been completed. FALSE ALARM SEQUEL RESERVIST BEFORE COURT Cl AOL FOR NOT REPORTING A false alarm which summoned fire engines to Ihe Town Hall the previous evening had a sequel in the Police Court yesterday when Trevor Walter McLisky labourer, aged 19, pleaded <:uilty to charges of committing mischief by damaging a fire alarm and wilfully giving a false alarm. Accused also admitted charges of failing to report to the Drill Hall, Auckland, for medical examination, and changing his address without notifying the Army authorities. Sub-Inspector Henderson said that an -ilarm was given from a box near the Town Hall the previous evening Machines were sent to the scene, but there was no fire. A search revealed accused acting suspiciously in Myers Park, and his hand was cut. A woman identified him as a man she had seen near the call-box. Accused admitted the offences and said he had been drink ing and had just struck the alarm in passing. "We view these offences as very serious," said Mr Henderson. "There are a large number of false alarmduring the year and the offenders are difficult to detect False alarms mean that machines may be missing from th; <tation when they are urgently required for a genuine fire elsewhere." Sergeant Gee, of the Army Records Department, said that accused was called up in June this year, but letters sent to his last address were not accepted The authorities had been tin able to trace him and it appeared that if he had not been apprehended he would have gone on evading his obliga tions indefinitely. "I have entirely nothing to say," said accused in answer to the charges "It was probably just negligence or something like that." On the charge of failing to report for examination, Mr F. H. Levien, S.M., sentenced accused to one month's imprisonment with hard labour. Fines totalling £ls were imposed on the charges relating to the false alarm, and on the fourth charge of failing to notify his change of address accused was convicted and discharged. MEDICAL SERVICES NGARU AWAH IA DISTRICT fO.C.) HAMILTON, Friday In view oi the urgent position that has risen regard;.ig medical services in Ngaruawahia and district, owing to the injury of Lr Douglas I). M artin in a motor accident, the Minister of Health. Mr Nordmeycr, has mad > arrangements in the meantime. Dr P. C. Service will provide general medical services in the area for a month.