NEW LOAN.

Taranaki Daily News, 30 September 1920, Page 5

NEW LOAN.

SUM OF SIX MILLIONS. FOR SOLDIERS' SETTLEMENT, (By Wire.—Parliamentary Reporter.) Wellington, Last Niglit. The Discharged Soldiers' Settlement Loan Bill was introduced to-day. It authorises the raising of additional money for the purposes of the Discharged Soldiers' Settlement Act, the amount not to exceed £6,000,000. The Minister for Finance (Mr. Massey) explained in the House that the, rate of interest would be f>y 2 * per cent., and that the debentures would not he free of income-tax. Securities to the amount of .€'2,500,000 may be issued as available for the payment of death duties. . The amount that a taxpayer may be required to contribute under the compulsory clauses of the Bill is not to exceed the yearly average of the land and income tax payable for the three years ended March 31, ID2O. A ! •- "i of appeal is provided. Money inv din the loan compulsorily will "bear mterest at the rate of three per cent. The Bill provides for the establishment of a depreciation fund, to be available for the purchase below par of securities issued under the Act. The Amount to be jyjid into this depreciation filnd from the consolidated fund is not to exceed £60,000 a year. Securities purchased from this fund will be cancelled forthwith. The final clause of the Bill authorises the transfer of £12,500,000 from the Consolidated Fund to the Soldiers' Fund in satisfaction of a former Joan authority. 3?he, money dealt with in this way forms part of the accumu- j lated surpluses which stood to the credit of the Consolidated Fund after th'e close of the war. ... A TOTAL OF *£7,600,000. MONEY FOR ONE OBJECT. PUBLIC WORKS LOAN LATER, » By TelegrMih.—Press Association. , Wellington, Last Night The Discharged Soldiers' Settlement Loan Bill was introduced. By O-overnor-General's message in the House of Representatives this afternoon. ~ 1 In reply to Mr. T. M. Wilfy>rd (Leader of the Opposition) . Ml. ,l3ie amount of the loan would be £6,000,000, ] but at the same time he desired to say that it was not intended that expenditure should be limited to that amouht, as he fully anticipated he would be ; able to transfer another £1,000,000 to the fund. That transfer would come from the accumulated balances m the department. Repayments now amounted to nearly £250,000, but he had not these in mind when referring to the transfer of which he spoke. At tlie end of the financial year, he anticipated, there, would be £T,5®,000 available for the fund, which would be sufficient for the purpose. Dr. H. T. Thacker (Christcln-rch East) asked if in the event of the* loan being over-subscribed the surplus would be handed to local bodies. Mr. Massey said that was another question. He wished it to be understood that the money was being raised for one purpose only, namely, assistance to soldiers. He would probably be asking for another loan of perhaps £2,500,000 for public works, but that would not be before Christmas. He would be prepared to go into details more fully on the second reading. The Bill was read a first time.