PUBLIC INTEREST IN DEBENTURE ISSUES

New Zealand Times, Volume XLVII, Issue 10966, 30 July 1921, Page 8

PUBLIC INTEREST IN DEBENTURE ISSUES

(Published by Arrangement.)

SAFETY AND 7i PEE CENT. FREE OF TAX. The extraordinary interest which '. is abeiiL taken m debenture issues ie evidenced by tile report of tho Postmaster-(ien-ural for the month of June, in. which he state? that the districts which show the greatest excess of withdrawals over deposits in accounts with the Post Office Savings Banks a-ro those most affected by the recent financial issues. Tile total excess of withdrawals in tho dominion amounted to <*£s,ooo. Undoubtedly the major portion of the .£150,000 subscribed to Macky, Logan, Caldwell, Ltd., per cent, debentures has been withdrawn from the Post Office Savings Bank. It is evident that the public view this issue with particular favour, and there arc many reason.? why their preference should thus bo' given. TJie per cent. debenture? which blacky, Logan, Caldwell, Ltd., offer are in the first place free of debenture tax. Tins means that for every .£IOO in debentures you hold you can collect from the local bank £3 Ise every six months simply on presentation of your interest .coupon. It is particularly worthy of note that 7J per cent, free of tax debenture? give a far better return than 8 per cent, subject to tax. Tho Government levies a tax of &s tin the «£ on all debenture interest paid by Companies, and this tax is paid by the Company on behalf of the debenture holder. If the debentures are not free of tax, the amount thus paid to the Income Tax Department is deducted from the interest payable to the debenture holder so that the return of 8 per cent, debentures not free of tax 15 only XS, minus 2-ts, o# £& 16s per cent. Contrast this with blacky, Logan, Caldwell, Ltd., 7} per cent, debentures rettmn'ng tho full £7 10s per cent. <0 nil investor?. Not a peony is deducted for tax or exchange, no matter what part of the Dominion you may live in, or what your income may be. The debentures issued in sums of £SO to hearer. They are therefore easily dbqxx'od of if necessary at n.uv time. At the end of five veays* the amount you subscribe is repaid in full. Fluctuation in property values or money values cannot reduce by one penny piece the amount you invest in these''debenture#. ' Intending investors should lose no timo An malaing application. as the full amount required is nenrin«* subscription. Prospectus can lx* obtained from the Bnnk of New TWrlnnd faR hunches), nnv member of Auckland ov WeTU-neton StooV RxrLnnce, or any of the Companv’c branches 522