GOVERNMENT FINANCE

Otago Daily Times, Issue 21993, 30 June 1933, Page 6

GOVERNMENT FINANCE

MONEY FOR NEW.WORKS

OVER-COUNTER SALES RESUMED (Special to Daily Times.) WELLINGTON, June 29. The Minister of Finance (Mr J. G. Coates) announced to-day ; that the Government had decided to resume the overcounter sales of New Zealand Government securities from Saturday next. The rate of interest will be 3| per cent. The Minister further announced that the holders of the original 5J per cent, loan, which falls due on August 15 next, will be paid in cash at maturity. Mr Coates said the Government had decided to resume the sales of debentures and stock on July 1 next through the post offices and branches of the banka of issue throughout the Dominion. The Minister stated that the securities to be issued are to provide an avenue of _ investment for the public in the Dominion, and that the proceeds of the sales will be utilised in facilitating the capital works programme of the Government, the policy of which is definitely towards works of a reproductive character, namely, land development and settlement, _ forestry and public worlts generally in conformity with the policy enunciated by the Government in January last and the world-wide trend. The Minister intimated that the new securities will initiate a new cc» in Government loan finance, in that .the interest rate will be 3| per cent. The securities will have a currency to November 15, 1941, the Government reserving the option of redemption on or after November 15, 1938, having regard to the desirability of maintaining tne stability of the Dominion and of providing continued employment. The Minister confidently anticipates a ready response from the investing public. Mr Coates also intimated that arrangements are in train for the resumption of the sale of post office investment certificates, which form of security provides a means for the investment of small sums from time to time. Further information in regard to this form of investment will be made public at an early date.