THE WAR LOAN.

Otago Daily Times, Issue 17089, 22 August 1917, Page 4

THE WAR LOAN.

THE FORMS OF INVESTMENT. The War Loan of £12,000,000, which is now open for application, is issued on the security of the whole of the revenues of the dominion. Even if it had nothing else to recommend it—even if a duty were not imposed on those who cannot offer themselves for military service to assist in the prosecution of the war by the offer of their money—it is an absolutely Bound investment. There are four different forms in which subscriptions to the loan may be made. These are the following :—

(1) An issue of inscribed stock or bearer bonds, at the option of the subscriber, with a currency of 21 years at 4£ per cent, interest, free of income tax. The investments may be wholly made at the date of the application, bearing interest from the day on which subscriptions to. the loan close, or may be made in four equal instalments, the last of which will be payable on the Ist March next, bearing interest from.' the respective dates of the payment of the instalments. (2) An issue of Post Office bonds of £100 each, with a currency of 10 years at 5 per cent, interest, payable half-yearly. No person can hold these bonds to an amount exceeding £500. The investment is not free from income tax. These bonds may be applied for at any postal money office. (3) An issue of War Loan certificates' repayable, with accrued interest, in 10 years. Under this form of investment a person may purchase a £1 certificate for 13s, a £10 certificate for £6 10s, and a £100 certificate for £65. It is important to bear in mind that the interest on the certificates will not be paid during the currency of the certificates. The certificates themselves, however, are negotiable. They are obtainable at the Post Office, and the Post Office will take custody of them on behalf of those investors who might otherwise be apprehensive concerning the safety of the certificate. (4) An issue of War Loan certificates repayable, with accrued interest, in five years. Under this form of investment a person may purchase a £1. certificate for 16s, a £10 certificate for £8, and a £100 certificate for £80. In other respects, the explanation made above concerning the issue of War Loan certificates with a currency of 10 years is applicable to this issue. Applications for the War Loan close on, the 3rd September. WAR LOAN POINTS. "A Small Investor."—-The essential difference between the War Loan certificates (with a currency of either five or 10 years) and the Post Office bonds, with a currency of five years, is that the interest in the case of the-War Loan certificates is accumulated until the certificates themselves mature, whereas in the case of the Post Office bonds it is payable every half-year. If it is of importance to the investor that he should receive his interest half-yearly, he should, therefore, make his investment in the Post Office bonds. The fact that the proceeds of this, investment are subject to income tax does not affect him if his total income does not exceed £300.

The issue of inscribed stock is for 21 years only at 4£ per "cent., free of income tax. The advantage of the inscription of* stock is that ,the investor is freed from the anxiety that.might be associated with, tho possession of debentures payable to tho bearer. INFORMATION DAY, BY DAY. OPENING PROSPECTS CONSIDERED BRIGHT. (Pbb United Press Association.) WELLINGTON, August 21. The following is officially supplied:—■ "The people of New Zealand are commencing to realise the fact that the war loan has been placed on the market. The first fruits of the advertisements and the advocacy of the press, the clergy, school teachers, and heads of local bodies are beginning to be apparent. Inquiries are numerous, particularly • with reference to the 5 per cent. Post Office war bonds, and money is commencing to flow steadily into both the Treasury and the Post Office. . " One patriotic citizen in Chrlstchurch has offered to exchange £500 worth of. per cent, debentures issued by a sound local body in exchange for a like amount of Post Office bonds. He stands to lose i per cent, by the transaction, but his action is one of the first evidences of the patriotic spirit in which it is- hoped the loan will be regarded.

" With reference to these 5 per cent, bonds it cannot be too clearly understood that the only declaration required is one that the proposed purchase does not bring the, amount held beyond £500. The amount-already reported to Wellington aa subscribed reaches over £150,000. This may be regarded as but a small beginning towards the £12,000,000 required, but there are no doubt many subscriptions oa the way. "Altogether the loan has opened -mSh the brightest prospects of success. Nevertheless there is no reason why anyone who is able to do so should further postpone sending in an application, no' matter whether the sum to be invested be largo or small. NATIONAL INSURANCE COMPANY'S * INVESTMENT. It has' been decided by the directors of the National Insurance Company of New Zealand to apply for £41,500 in the new war loan, thus bringing the subscriptions of that company in the three loans to £120,000. _^