THE NEW LOAN.

Waikato Times, Volume 98, Issue 16096, 20 September 1924, Page 5

THE NEW LOAN.

A SERIES OF QUERIESGOVERNMENT'S NEW SHARES. MR SPEAKER INTERVENES. Th© offer of the Bank of Now Zealand to advance £1,125,000 to the State has aroused considerable interest, and yesterday afternoon Mr F. Langstone placed a series of questions before the House dealing with various aspeots of the transaction. Mr Thompson (Wallace) also placed a question on the Order Paper, as to whether those who take\up Post Office bonds will be given the same rate of interest (51 per cent.) as the Bank is to receive for the loan.

By Telegraph—Special to Times WELLINGTON, Friday

Mr F. Langstone. Labour member for Waimarino, returned to-day to his criticism of the loan of £1.125,000 secured by the Prime Minister from the Bank of New Zealand in a lengthy series of questions. Mr Langstone asked:

Would the Government actually contribute £375,000 in cash to the Bank in connection with its share of the new capital to be issued? This meant that they would hand the money over for the privilege of paying 5£ per cent, interest for it. Would the money be taken from surplus revenue? If so, could not the amount be transferred direct to the State Advances for assisting settlers protected bv the Moratorium? The saving would'be £18,750. Would not the "unimproved value" of the Bank shares be inflated by 16£ per cent.? or was it/that the Bank did not have enough money to meet its requirements?

The Speaker intervened at this stage, and informed the hon. member that he must not introduce argument or controversy into questions which were merely for the purpose of securing information. Mr Langstone: There is only one more. (Laughter.) Would the Government introduce legislation to provide for the establishment of a State Bank? (Benowed laughter.)

The Prime Minister replied that Mr Langstone was alleged' to be stating facts, whereas his statements were not facts, and he would take another opportunity of proving it. "So far as our share of the new capital is concerned," said the Prime Minister, "wo have no such intention as paying cash. Wc do not do our business that way." Mr Masse y added that the new share capital of the Bank was required to finance undertakings in the Dominion, such as agriculture, as well as overseas trade and commerce.

POST OFFICE BONDS. QUESTION OF INTEREST. By Telegraph—Special to Times. WELLINGTON, Friday. One of the Liberal members, Mr J. G. Thomson (Wallace) gave notice of his intention to ask the Minister of Finance whether he proposed to pay investors through the Post Office in Government bonds and inscribed stock the same rate of interest as was to be paid to the Bank of New Zealand for the loan—viz., 5i per cent. The rate paid investors through the Post Office was now 5 per cent. Mr Massey said that the Post Office funds were at call; hence the lower rate. Mr Thompson said he was not referring to the Post Office funds, but to Government stock having a currency of five years. Investors procured this stock' through the Post Office. Mr Massey: Possibly I did not catch the full purport of the hon. member's question. If it is put on the Order Paper I shall answer it then.