NEW ZEALAND’S CREDIT

Wanganui Chronicle, Volume 75, Issue 142, 18 June 1932, Page 7

NEW ZEALAND’S CREDIT

RECENT LONDON LOAN REASON TO BE SATISFIED WELLINGTON, June 17. In his address to shareholders at tho annual meeting of the Bank ot New Zealand to-day, the chairman (Mr Oliver Nicholson) said: Tho Government raised a 5 per cent, loan of £5,000,000 in London last April at an interest cost of about 5j per cent. The issue was very favourably commented ou ny the Press, but unfortunately it was made just as a sudden and quite unexpected cessation of the demand for gilt-edged investments set in. The underwriters were left with. 47 per cent, of the loan, but on the market improving, this balance of tho issue was quickly absorbed. Four millions of the loan to be utilised for repayment of that amount of Treasury bills maturing m London this month and one million for public works. The Dominion every reason to be satisfied with the result of the loan, which reflects the high credit New Zealand enjoys on the London market. The exceptionally low rates for money now ruling in London should enable the Government to finace there temporarily on Treasury bills, thereby obviating the necessity for remitting from New Zealand at the present high rate of exchange and also saving a considerable amount in interest. It. must not, however, be overlooked that the recent riotous occurrences in Dunedin, Auckland and Wellington have, for the time being had a disturbing effect on the coun try’s credit on the money market in London.