THE WAR LOAN

Otago Witness, Issue 3313, 12 September 1917, Page 18

THE WAR LOAN

A HIGHLY SUCCESSFUL FLOTATION. (From Oub Own Correspondent.) WELLINGTON, September 4. "The War Loan has been over-sub-scribed," said Sir Joseph' Ward in the House of Representatives to-day. The announcement was received with applause. "I think," added the Minister of Finance, " that in the course of the few days since the loan has been left open the amount will exceed £16,000,000. Companies, societies, trustees, and others have not been able to subscribe, owing to the necessary legislation not being passed. But they will have sufficient time to do so. The compulsory clauses have not been put into operation. They are not the law of the country yet. I hope it will not be necessary to put them into operation. I cannot say until the loan is finally closed whether or not it will be necessary to review some of these who ought to put money into the loan. I hope it will not be necessary." DUNEDIN SUBSCRIPTIONS. The amount subscribed at the Dunedin Post Office amounted approximately to £487,500. The returns from the other postal offices in Otago have yet to come in. The officials are entitled to special mention for the manner in which they dealt with a quite unprecedented rush of work during the past four days. Till midnight, and later, on Friday, Saturday, Sunday, and Monday nights the office staff ungrudgingly gave their services without any extra fee or reward, and they certainly did their part towards making the loan the success it has proved to be. One employee who resides in a suburb, was unable to get to his home from Friday night to Monday night, owing to the lateness of tho hour at which his work ceased for the day. The South British Insurance Company has subscribed £IOO,OOO to the Liberty Loan, making a total of £425,000 to dominion and Imperial loans. OTHER APPLICATIONS. LAWRENCE, September 4. The contribution from Tuapeka County towards the Liberty Loan was approximately £54,000. Of. this amount £22,000 went "through tho various post offices, while banks put through £12,000. EFFECT ON THE MONEY MARKET. (From Our Own Correspondent ; WELLINGTON. September 6. "The raising of £16,000,000 in New Zealand cannot help affecting the financial companies," said the secretary of a local company to a Dominion reporter on Tuesday. He stated that a good many people who had money lying at 3,6, and 12 tnonths had invested largely in the War Loan, and as the terms expired the money would bo withdrawn and paid into the Treasury on of bonds taken up. In such circumstances the public could not expect, money to be so fluid as it had been in the immediate past, and there would certainly not bo the amount of money available for mortgage purposes that there had been. Whether that would affect the rate Oif interest remained to be seen, but logisally it should. The effect of tying up

such a great sum in the Liberty_ Loan must neceesanly curtail the activities of tho financial companies, and even now _ there were those who were not in a position to advance any further moneys on mortgage until they saw more clearly how they stood. The tendency was for the price of shares in financial companies to decline in anticipation of a restricted scope of operations. APPLICATIONS STILL ACCEPTED. WELLINGTON, September 6. It has been decided that applications for investment in the War Loan for all classes of bonds will be accepted for a further period. Those coming to hand up till after that date will carry interest as from September 3, and those corning to hand after that dato will carry interest as from tho date on which the money is lodged to tho public account or with the post office after the end of this week. Fully paid subscriptions only will be accepted. Subscriptions to the loan are still steadily flowing in, particularly from the remote country districts, to which Sir Joseph Ward sent a special circular.

NUMEROUS SMALL SUBSCRIPTIONS. (From Our Own Correspondent.) WELLINGTON, September 5. Sir Joseph Ward made a short statement regarding the war loan in the House of Representatives this afternoon. He said that members knew already that the loan had been a very groat success. The country had shown that it would respond well to an internal loan. There was a lesson to be learned from this fact. In all human probability when the war was over the dominion would adopt to a large extent a policy of raising its loans locally. He believed that for some time after the war the dominion would be bound to raise within its own oorders a large proportion of the money that would be required for the internal development of the country. The expenditure of money on works of development probably would bo more necessary than ever. Employment would be required for largo bodies of returned soldiers, and provision for suitable works had been made in the Bill. The Minister added that he had not been able yet to have a complete classification made of the subscriptions to the war loan, but ho could say that he had been surprised to find what a very large number of people had subscribed sums of from £IOO to £IOOO. The wide distribution of the applications was a very gratifying feature of t u e loan, and tho people of small means had done very well indeed. BALCLUTHA INVESTMENTS. The following are the returns from ho Balclutha Post Office in regard to the war loan: —4i per cent, bonds. £400; P.O. war bonds, 5 per cent., £l2 900: war loan certificates, £293B;—total, £16,233. TTMARU, September 4. The po?t office officials state that the total figures for the war loan are not yet available. GORE. September 4. Up to closing time yesterday the post office business in connection with the War Loan totalled £25.896. SkENHEIM. September 7. The amount subscribed in Marlborough to the war loan is over £130,000, consisting of

£42,717 in the post office, £78,000 in the banks, and £IO,OOO with the brokers. The subscriptions would bo considerably greater if tht investments made in the larger centres were added.