DOMINION LOAN IS LONDON

Taranaki Daily News, 2 May 1930, Page 11

DOMINION LOAN IS LONDON

POPULARITY ON THE MARKET. By Telegraph—Press Assn.—Copyright. London, April 30. The Daily Telegraph’s financial eorrea* ponnent states that £5,500,000 New Zealand 5 per cent, inscribed stock (1949) is being underwritten at 99. Pari is required to meet a short term maturing debt. New Zealand is always a popular borrower on the London mar- — ket. While the depression in the pas- ■ toral industry has affected the exchange, the high standing of New Zealand credit is evidenced by the quotations of its outstanding loans. PRIME MINISTER’S STATEMENT. By Telegraph.—Press Association. Wellington, Last Night. The Prime Minister in a telephone message from Rotorua stated that the Press cable to. the effect that a New Zealand loan of £5,500,000 at 5 per cent, with currency to 1949, was being underwritten at £99 per cent, was correct ’- insofar as '.the terms and purposes of the loan were concerned. He stated that he would give further particulars later on after* the public subscription lists Closed. ' ; ; Sir Joseph Ward added, however, the further statement that part of the loan 'was required to meet a short-term ma- -- turing debt was. misleading. It was true that part of the cash, proceeds would probably be temporarily used to pay off Treasury bills issued in London on account of exchange difficulties hindering the remittance of cash from New . Zealand, which cash is at present invested here on fixed deposit. The loan, however, was being raised for carrying on the public works programme nf the Government, and it would be applied to that purpose within the current finan--eial.year.