DOMINION LOAN.

Poverty Bay Herald, Volume XLIX, Issue 16122, 10 May 1923, Page 8

DOMINION LOAN.

PREMIER'S STATEMENT.

\ YFRY SUCCESSFUL ISSUF

lper Press Association.)

WELLINGTON, last night

'The whole of ilic- details are not vol to li.ind with regard to the issue of the N r ew Zealand 4 |xt font, loan," stated the Prime Minister to-day, * 'hut. sufficient information has been received 1 ' to make it elear thatl tlie loan lias been very successful, and 1 I lie. full amount is already covered. The lists are still open in allow country applications to come in, when probably allocations will bo. made pro rata to the applications received, A new arrangement has. boon made, by which tho Bank of RnglanrV will reduce its charges for inscribing tho. lo:in from £2500 per million to £1250 per million. The bank is also reducing its annual charges for management to a. flat rate of £3OO per million. This applies to all New Zealand! stock managed' by the Hank of England'. The bank is also refunding a considerable amount of the money which has been charged at the higher rale for this purpose, in past years, particulars of which will be given in tlim Financial Statement.

"The loan just floated'," continued Mr. Massey, "lias been issued at £92, iho rate being 4 per cent., and! it is redeemable in 1945 or at option of Government, in 1933, or or at any date-between 1030 and 1943. The issue at 4 per cent, on the. conditions given lias the advantage of establishing a. particularly low rate for Dominion loans, and must have a marked effect, on future operations. If our new loan had l been issued at £9B and at a rate of 4£ per cent., with the fflccnt New South Wales currency of twelve years (and we had the option of doing this), the cost with redemption would be £4 14s 6d, while the New South Wales issue (£94 at 4| per cent.), cost £5 3s 9d, a difference in favor of New Zealand of 9s 3d per cent, per annum. Naturally the shorter term of ten or twenty years accepted for the new loan increases its redemption cost as compared with an issue with a. longer currency, but as against this, the shorter currency of the present New Zealand loan effects the saving of £20,000 in compound stamp duty, charges. It is scarcely-necessary to add that what has taken place in. connection with this loan...proves once again that the credit of New Zealand is particularly high in the financial, circles in London.