FINANCIAL OPERATIONS IN LONDON.

Otago Witness, Issue 2902, 27 October 1909, Page 32

FINANCIAL OPERATIONS IN LONDON.

(Feost Oitb Own Co-respondent.) ; WFLLINGTOX. October 22. j The most interesting portion of the financial .statement delivered by the Prime MinL-tev to-nitjlit wa=; his reference to recent and prospective financial opoiation-> in London. Thp' iieures in regard to the reouirement's of members this session he said, -were enormous. He had talked the matter over with the Minister of Public Works that afternoon, and the latter had told him that the applications would be for nearly ten millions. The pruning knife, said Sir Joseph Ward, must be applied freely and fully. Recent loan-s raided in London had a currency till 1940.

In connection with maturing loans, he was pleaz-ed to be able to tell tlv? House that fche^e were very -«ucoessfullv arranged. During th« pafit financial -> r ear debejitures amounting to £3,132.000 ' fell due. and of that larjre sum £2.148,488 was renewed by the holders, leaving £934,750 to be provided for by the Rile of new debentures. Debentures for over a million, previously bearing interest at 4 ]>er cent., had been placed at 3£ per cent , tha exact position being as follow 5: — Amount nntui'°d at 4 ]v>r cent.. £2.010,800 : at 3£ psr cent . £1,057.438; at 3 per cent , £65.00-3 :— tot p! £5,153.238. Renewed or provided for at 4 „?\ rc-'-.t . £910,825; at 3> per cent., £221.763: outstanding, £650.000 ; irivinjc a pavniu <^-f £5200 per annum in intcn-t D.ninn t'i.2 pr«-=ent year there wou'd !■>• p'-furin" £2.619,023. «*md of tint an!,i'«l £1.552.650 '■-11 duo durincr t'lo la«t --ix v -~th= Of this sum £634.800 h-d Kpm ,-=;r.,Tf) "hv lhf> holdc-is. and £867.8 i 0 l.ad b -n yu'i off without Prty frJcit ?oi a] 'h' 1^ <,? ti.- 1 I! miin'^n for ini c re<«t. O ],-Mfjl uf £^O.COO. b-ailnj inicro.-t ;-t 6 ]-i r -nt . h.'d 1 :.n =.pc:n<=d at 4 v-i (,"v. In .\i,ril of tin >o.ir £].5?0.C:0 of deb-!.t>ys h-.-d hn' r i---i!?d at 3^ oc; re;it. «it 99i net. H-.- 1> '"cvrd in civile Hie li^lit of ccn- •\ el.e 1 . m"( n ,i'l a !ov cr lat-" to tho^e who v. • \\\<\ tn! » tlj? dchenti're= for a lohht p'i ; ';d. A« to the mil'lon h^ !iad lai-c-ly in London, thcie v,,tj ro brokvra^e pncl ro di.-. uunt on that iiionoy. Hs had already iLit-cd tliat they had not put. that nionpy upon the market Tiie money wa.s obtained at 3^ rer cent, at par, •ou L dix-ount or brokerage. Massey : For what term? The Prime Minister : I have already said for no term. Mi Massey : Not at call, surely ?

The Prime Minister : I will not enter into details, except to say that it was in anticipation of a loan to be arranged* What is done finally regarding it I hope will bs as successful as has been done in connection with other loans. He went on to say that this year the Dominion had obtained portion of its money in London at 2£ per cent. i Mir W. Fraser : For bow long ? The Prime Mii&ter : For the time tlia t we arranged to take the money. ( Mr Fraser : That might be only g, ' month. I The Prime Minister : No, cot a month. I I simply wish to call attention to the fact that we obtained by way of a temporary advance money at 2£ per cent. Surely that shows that we stand in a good ] position in the Old Country. The Prime i Minister added that it was necessary that New Zealand should borrow for public works, and it was for the Government to ensure that the money was spent on reproductive works that would provide a reasonable rate of interest. The Government intended to make provision in that direction. | Mr Massey : How can you apply that to new districts? Th<* Prime Minister : I think it can be done with certain reservations. One reason for providing for works so far | was owing to a piobable general election in England in Jjnut'ry. He announced that on Tuesday he would bring jo'vn an import mt bill regarJing borrowing for advances to settlers and local bodies. Mr Mas-ey asked if the Prime Minister would embody in the- statement he was going to circulate the liabilities in the Public Works Fund to the end of the last quarter. Th 3 Prime Minister agreed to do this, j He concluded with the exp.-Pb.-ion ot j opinion that New Zealand stocks weie a j