NEW ZEALAND LOAN

Otago Witness, Issue 3214, 20 October 1915, Page 26

NEW ZEALAND LOAN

SUCCESSFUL FLOTATION EXPECTED. (From Oue Own Coeeespondent.l WELLINGTON, October 14. The Finance Minister (Sir Joseph Ward) informed a reporter to-day that the loan would be advertised all over New Zealand on Monday morning, and that ail information required by persons wishing to invest in it would be available on that day in every centre of the dominion. “ The indications are,” Sir Joseph Ward said, “ that it is going to be a very_ successful flotation I have already had inquiries from all parts of the dominion.” PROSPECTUS ISSUED. APPEAL TO THE PUBLIC. WELLINGTON, October 15. Particulars have been issued by the G<> vernment of the conditions under which the public are invited to invest in the £2.000,000 loan authorised by legislation last session to be raised in New Zealand for local expendture during the war. “In view of the financial strain at present imposed on tho Imperial Treasury in providing moneys for carrying on the war, the Government of this country confidently asks all New' Zealanders w;ho can afford to do so to assist tho Empire, by investing freely in these debentures,” says the prospectus, “ and thus in a measure relieve the Mother Country of the burden of having to provide capital required for local purposes in New Zealand.” Tho rate of interest payable is per cent. Application may bo made for £5 or anv multiple of £5, and for a currency of 5, 10, 15, 20, or 25 years, at tho option of subscribers. Applications for sums not exceeding £SCOO must bo accompanied by the total subscription or a bank receipt for the amount, and applications for sums in excess of £SOOO must be accompanied by a deposit of 10 per cent., the balance to be payable on allotment, which will bo made by the Controller and Auditor-general. Holders of Government debentures issued under the New Zealand Loans Act and maturing on or before December 1, 1916, will have the option of converting into 4g per cent. 1915 debentures at par if application is made to the Treasury on or before November 30, 1915. Tho interest under the new debenture will take effect after- tho coupon for the then current half-year under the old debenture has been paid. Persons who now have money deposited in tho Post Office Savings Bank may purchase 4£ per cent, debentures by means of transfer. The debentures are Government securities in which trustees are authorised to invest trust funds. Applications will close at tho Treasury on November 6, 1915, but the Government reserves the right to close at a prior date or to extend the period at its option. In the case of over-subscription the Government reserves the right to decline any application in whole or in part it may determine. Interest will not be paid in respect of any amounts forwarded with applications which are declined. HELPING OURSELVES. THE SILVER BULLET. (Feou Ode Own Correspondent.) WELLINGTON, October 17. The prospectus of the two million loan for public works, which is to be raised within the dominion, was published in the local newspapers on Saturday, and this evening the Minister of Finance made a statement to a number of journalists who sought information as to the nature and purpose of the operation. “To all intents and purposes, this is a much a war loan as it would bo if it were raised directly for the equipment of armies and the pro,vision of munitions,” said Sir Joseph Vv ard “The Mother Country has undertaken to provide the money the domipions require for their military operations—a matter of some five or six millions in the case of New Zealand alone—for the current year, but, with tho enormous demands being made upon her in every direction, we cannot in reason or decency expect her to finance our local expenditure as well. “ In normal conditions we should have gone to London for this money, but the conditions to-day are not normal, and it behoves us, as patriotic citizens of the Empire, to shoulder this burden ourselves, in order that our work of development and production, which is of more importance than ever to the nation in the present crisis, shall go on with as little interruption as possible, lire maintenance and expansion of industries, trade and commerce are scarcely of less consequence than the supply of men in the present terrible struggle, and I am 6ur ® that people v.'ho realise this fact will not hesitate to assist in supplying what are essentially, and in a very special sense, the ‘sinews of war.’ “ There is no need to say anytnmg about the loan as a means of investment,” continued the Minister. “It will particularly appeal to the small investor in this respect. There are no alarming formalities to be observed, no delays, no risks, and no commissions to be paid. Tho interest is good, the security tho best in the world, the time of repayment practically at the option of the investor. His debenture will always bo saleable at face value, and probably at a premium. “But I would rather appeal to the sentiment of the small capitalist than to his business instincts,” Sir Joseph Ward went on. “ Many of us are unable to go to tho war. Age, physical disability, domestic responsibilities— all of them or any of them may tie us to our homes. But here we have an opportunity to do the next best thing to help on to tho utmost of our means the sacred cause for which the whole Empire is fighting, to remind our kith and kin at the front that we are ready to do our part w-ithout stint, and to demonstrate to our enemies that no difficulties, no sufferings, no opposition, however formidable it may seem, can w'oakon onr resolution nor lessen our enthusiasm.

“It may seem unnecessary for New Zealand to make repealed displays of its loyalty. Here wo all know so well how deeply it is ingrained in the very life and being of the people that even its expression may appear a superfluity. Cut our enemies, who miss no opportunity for the invention of new lice or the circulating of fresh 'slanders, are watching us as closely as ever to-day with the same malign purpose as when" they started the war, and would delight in any excuse for the repetition of their infamous misrepresentations. I want to see the people-of the dominion —every man and woman, and even every child —

joining in an united effort to send to them the answer which has been flung back by our countrymen at tho battle front and in the trenches. We all can hurl the silver bullet according to our financial ability. Lot us do it now.”

• P ros PCctus has been well received m ” elhngton, and financial authorities exP ec t that there will bo a. ready response, both by small and large investors. Forms ■of application may be obtained from any postal money order office, or from the Treasury.