The Minister for Finance desires to make a statement with regard to the Loan.
THE LOAN. - STATEMENT BY MINISTER FOR FINANCE.
I am hardly yet in a position to give the Dáil all the figures I would wish to give in connection with the Loan. But I would like to state here publicly what we all know, that the success of the Loan has been greater than even the most sanguine of us expected.
Although we found that the Loan was over-subscribed, so far as we could discover, on Thursday evening, and sent out notice to the Press to that effect, we received on Saturday £825,000, and on yesterday £125,000. If the Loan had remained open until yesterday, which was the date fixed for closing, I have no doubt at all that we would have received between fourteen and fifteen millions. As a matter of fact, even although notices were sent out on last Thursday night, we got in eleven and a half millions from the Bank of Ireland alone, in addition to other large sums that were returned direct by Banks and stockbrokers throughout the country—to their clients. We got all that money from the public, although the banks, in case of necessity, were willing to put up a very large sum. They agreed to do that in the public interest. Not a penny of underwriting commission was paid to anyone in connection with the Loan. The amount that we wanted was more than subscribed by the public in response to the appeal, and the only expenses that we incurred, in connection with the Loan, were the few thousand pounds spent on advertising.
Of the eleven and a half millions that came in through the Bank of Ireland, it was given by something over 22,000 subscribers, so that, in spite of the very large subscriptions which we received, the average subscription to the Loan was a little over £500. We intend, so far as the subscriptions which we received in time are concerned, to allot in full to those who made application for sums of £5,000 and under. When we exclude the further amounts received on Friday and Saturday, we will be able to allot to the other subscribers, without any very large deduction, probably something in the nature of ten per cent.
In addition to the amounts received for the Loan, there was a great increase in the amounts invested in Savings Certificates during the two weeks that the Loan was before the public. One week we received £20,000, and last week we received £53,000. This result was achieved by co-operation from all sections of the public. I desire to thank members of the Dáil and of the Seanad for the help they gave in connection with the Loan. Very many of them went to very great trouble to secure subscribers and to interest their friends in the Loan.
I would like to record my sense of appreciation of the great services that the Press, both the daily and the weekly Press, rendered to us. I have no hesitation at all in saying that the great success of the Loan has been one of the most important things that has occurred for a very long time. It removes altogether, I think, the likelihood that we will have to go outside, to London or to New York, for any money that we require. It is quite evident to me that there is such confidence in the country, and such a willingness amongst the people of all classes to supply what money is needed to carry on the administration of the country, as to make it certain that whatever further sums we may require will be got inside the country. That, I think, is a very important thing, and places this country in a position that I think we would all desire. It makes us independent of many manipulations and many considerations that might be detrimental to this country's interests in the future if we were faced with them.
I believe that the stability of the country will be greatly strengthened by what has occurred. There was a great deal of pessimism before the issue of the loan. I might say that a number of people, not a very large number, whom one would regard as competent, advised us that the terms we were offering were not good enough, and that we would not secure the subscription. A very large number of people told us that we would get two or three millions, but that we would be flogging a dead horse for the rest of it. All these prophets of pessimism have been confounded. I think that when we started, faced with such an amount of pessimism in regard to the Loan and had such an extraordinary success, that we will undoubtedly be able in our future borrowings to get money on more favourable terms than we have got this money, and that, of course, will be of great importance to the country.
When we have to undertake any works of construction or development, the question of whether a particular work will be economic or will not be economic, will depend very largely on the conditions and on the rate at which we can borrow money. I believe that this country is now definitely on its legs, from the point of view of credit, and that in our future borrowings we will be able to borrow as well practically as any Government or nation can borrow. I think that we have very great reason to congratulate ourselves, and to be congratulated on the way in which all classes have come in to help to do what was necessary at this particular juncture for the country.