NEW ZEALAND LOAN

Otago Daily Times, Issue 16542, 16 November 1915, Page 6

NEW ZEALAND LOAN

A GRATIFYING SUOCKSSI STATEMENT BY SIR J. G. WARD. (Per United Press Association.) WELLINGTON, November 15. The total sum offered to the Government in connection with the Public Works loan of £2,000,000 was £4,124,820, tiiis sum including £480,225 of renewals by way of conversions. The Minister of Finance announced those figures to-night. "Of the loan of £2,000, COO." added tho Minister, "the investing public of New Zealand receives £1,955,&55—thnt is, exclusive of investments through State Departments, the total under that heading being £44,145. All investments up to £100,000 have been aoecpted in full. An allocation has been made in the case of applications beyond £100,000. Investors had tho option of taking-debentures for periods of 5, 10, 15, 20, or 25 years. The total cash allocations for five years amount to £1,062,455, for 10 years 'to £359,635, for 15 years to £82.050, for 20 years to £13,980, and for 25 years to £481,880. 'The loan was issued at par, and no advantage was_ given to anybody so far as tho price of issue was concerned. The smallest investor and the largest stood on the same footing.." In answer to a question regarding tho cost of issue. Sir J. G. Ward said that every comparison that oouid be made was favourable to the local issue. If the loan had been raised in London it would have required to !be . underwritten and then issued at a discount. Ordinary charges for commission and brokerage would have had to bo _ paid. No special inducements of that kind had been offered in tho case of the locally raised loan, and the charges had been very small, amounting to little more than the cost of printing and advertising. A brokerage fee of one-half per cent, had been paid in the case of applications forwarded through licensed brokers and banks. 'It will be a considerable time before the Government goes unon the New Zealand market for another loan," added Sir J. G. Ward. "In /ill human probability we shall not have completed the expenditure of this money on public works when the war reaches its conclusion. War loan money, which has been coming into the country at the rate of £500,000 a month, or £6,000,000 a year, will then have ceased to reaoh us. and the question of future borrowing and where it shall bo effected will be considered at that time. The Government will continue to assist cottiers and workers by advancing money at low rates of interest in_ comparison to what we are paying to investors. We will continue to make advances to local bodies al=o. the limit in that branch being £5000 for a single advance. This certainly should have a steadying effect on the money market."