FIVE MILLION LOAN

Otago Witness, Issue 3512, 5 July 1921, Page 23

FIVE MILLION LOAN

6 TER CENT. INTEREST. WELLINGTON, June 27. The Government announces that a New -Zealand Government loan of £5,000,000 will be issued in London to-morrow (June 28). The rate of interest will be 6 per cent., and minimum price of issue £96. ! The loan is repayable in 15 or 30 years at : the option of the New Zealand Government. MR BEAUCHAMP’S APPROVAL. (From Our Special Correspondent.) AUCKLAND, June 28. “ I think the raising of loans at short periods is quite justified under existing circumstances,'’ said Mr Harold Beauchamp, chairman of directors of the Bank of New Zealand, this morning. “That is to say,” he continued, “ having regard to the exceedingly high rate of interest now ruling for money. It is quite obvious that id would not be wise for This country to commit Itself to the payment of the rates now ruling for inordinately long periods. I note the Finance Minister (Mr Massey) is now 011 tiie market in London for raising £5,000,000, at 6 per cent., for a minimum of £96. Taking into consideration the cost of underwriting, I assume this will mean practically 6? per cent, to the dominion. It will be remembered that the India Council lias recently raised a largo sum of money at 7 per cent, per annum at par. so if this dominion is to be successful in inducing subscribers to the present loan at and on the terms indicated it will he a source ot congratulation.'’ LONDON. July 2. The underwriters received 58 per cent, of the New Zealand loan.