The Star. MONDAY, DECEMBER 21, 1903. THE LOAN.

Star (Christchurch), Issue 7890, 21 December 1903, Page 2

The Star. MONDAY, DECEMBER 21, 1903. THE LOAN.

The firet half of tbo million loan authorised by the New Zealand Parliament last session has been issued, ln pursuance of the Government's decision not to approach the London market while it is in its present unsettled state, tlie loan has been issued locally. As its conditions were first published some weeks ago, and as they foava appeared) in the various newspapers of the colony regularly ever sinee i they ought to be toleraibly familiar to the investing public. For the benefit of those people who have not read them, W© may say that the loan is being issued in tlio form of 4 per cent <tebentures 1 payable to boater, and of the faoe value of £1000, £500, £200 and £100 respectively, is may bo desired. The principal will be repaid at par not earlier than five years and not later than twenty years from February 1, 1904, and the minimum issue price is £100. Tenders will close on Wednesday, so that in a few days we shall knot* whether the initial experiment of floating a State loan in the colony has been successful. For ourselves, wo believe that it will prove successful. The Premier agrdes with this vifcw, and, indeed, ihas gone so far as to declare that, "from information received," he is in a position to announce that the success of th* lbain is "practically assured." /Phis is good news. Wo never doubted that the loan wouid be subscribed, but it is reassuring, nevertheless, to have Mr Seddon's word' that the prospects are bright. As evidence of tho Success of the loan his - statement justifies the Government's self-re-liant polity, both in holding . aloof from the Some money market and ia offering a safe and remunerative investment for the surplus stock of money in the oolotiy. The fear that the Government's action trill be the means of increasing the rate of interest gives no indication of being realised. The truth is that there is so much, private money awaiting investment that the taking up of even a million pounds' woirth, of State debentures will not have the effect of tightening the market appreciably. It will be notioed that the terms of the loan are so arramged as to suit all classes of investors. The person with but £100 to invest and the financier with £100,000 ai<e both catertxl for on equal terms. Moreover, as the debentures may be made negotiable, the small as well as the large investor Will be iii ai position to convert them into cash ait' any time during their currency. With a view of facilitating this operation, we think the Government might do worse than take into consideration the question of encouraging a market for State debentures. If the investor felt that h© had a regular market in which to unload when he desired to do so he would naturally display greater eagerness to apply for not only the present loan, but any that may be. raised locally in the future. _