INTERNAL LOAN

Otago Daily Times, Issue 23810, 17 May 1939, Page 10

INTERNAL LOAN

ISSUE WELL RECEIVED EARLY INDICATIONS PROMPT RESPONSE FROM INVESTORS NO DOUBT OF SUCCESS (Per United Press Association) CHRISTCHURCH, May 16. The new internal loan of £4,500,000 at 4 per cent, which the Prime Minister (Mr Savage) announced on Monday has been received exceptionally well, and the indications at this early stage are that it will be heavily over-subscribed. Commenting on the first day's response on the Christchurch Stock Exchange the chairman (Mr H. Kitson) said: "From reports from the banks, members of the Stock Exchange, and the Treasury itself very good business has been done. I think the loan has been received as well if not better than any I have handled." A reaction to the issue of the loan was noticeable on the Stock Exchange to-day in a slight easing in values for Government loans and a reduction in the number of both buyers and sellers owing to the more attractive terms and new features of the latest issue. The opinion that the Government has shown its intention to adhere, in the meantime at any rate, to orthodox finance was shown by a rising market for Bank of New Zealand shares, which gained 8d on sales at 39s lid, and closed with further buyers at that figure and sellers at £2 0s Id. LONDON INTERESTED DATE OF REPAYMENT THE ALTERNATIVE METHOD (Independent Cable Service) LONDON, May 15. The City is interested in the innovation of the New Zealand internal £4,500,000 loan by which an alternative date for repayment is provided. Some observers consider that this method may be adopted in British financing.