FINANCIAL OPERATIONS.

Poverty Bay Herald, Volume XXXX, Issue 13091, 3 June 1913, Page 6

FINANCIAL OPERATIONS.

HON. J. ALLEN AND THE LOAN

DIFFICULTIES ALLUDED TO

(Per Press Association.)

AUCKLAND, this day. Discussing the financial operations, the [Hon. J. Allen remarked that the three million loan was raised in a very bad tiuie. He had no hesitation in saying that nobody and no country could have done any better at that moment. The money market was not. in a particularly disturbed state, but there was at the time a tremendous demand for money all over the world. The Balkan trouble had undoubtedly an effect on the market, but not to the extent people believed. The £3,000,000 loan," he said, "was raised for 4 -per cent, at 9tf, with a currency of 30 years — 50 if we want it. The whole loan can therefore be redeemed by the payment o.f £4 5s 6d per cent, in 50 years."

"Tlie amount available for >public works is, I believe, £1,750,000? queried the pressman.

Tlie Minister replied: "I think it is about £1,250,000, but more money has been raised' since the £3,000,000 loan at a better rate. I have come back with definite proposals, also, to meet two large loans which fall due next year. I refer to the £4,500,000 loan raised last year, and to the other loan maturing next year of about 3^ millions. Both of these loans aro 3£ per cent, loans. These are the only two loans which we need to worry about. . All the others coming due within the next two years are 4 per cent, loans. I am not troubling about them at all. I will admit that the two bigger ones mentioned may give some littio concern 1 but that concern will dirappear if New Zealand lives within its means, and does not become extravagant — in' fact, keeps up its reputation on the London money market. The outlook generally is now very good indeed. I think the change of Government has made it brighter than ever it was."

Speaking of the money available for public works, Mr A.len declared that there would be a substantial amount this year, "sufficient to carry on our public works at as rapid a rate as that at which we, are justified in carrying them, but if you ask if" there is plenty of money for public works, I must reply there is not plenty to play with."