SINKING FUNDS.

Dominion, Volume 2, Issue 511, 19 May 1909, Page 8

SINKING FUNDS.

■.// : :;.\\M : iNOTasma;.QTOTipN.v.. ;■;■ 1 . (BT raLiaEisnT-BTECIIIi COBBISPOHDBiri.). ' ; ( : '. Christchurcn, Ha'ylsl ,' An interesting question cropped up at the meetdngof the City Council last night. The- Sinking Fund 'Commissioners called attention to tho present position with regard to the £35,000 urainagb loan. The money was borrowed in the year 1872, >aiid wab' repayable as ''follows':—£8000 on April 1, 1922 £6000 in 1923, £1400 in 1924, £10,600 in 1925, and £9000 in 1926.. The actual amount of sinking fund'in hand, represented, of course, by investments on March,3l in this iyear,' was, £30,953 Is. 10d., and they estimated that by August 31, 1911, tho sinking fund would have amounted-to £35,000, :or tho amount of the original loan. In connection with the. sinking funds generally tl>e>whblo'investments'had realised a net income during last year of 6J peroent, on tho capital involved. ; • ; The Mayor said that if tho fund went on from 1911, when the. Bum required was availablOj until 1923, there would be, a very largo surplus, and ho thought that special legislation ■ might be obtained. enabling use to be mado. of tho surplus funds after the full ■ imount wasprdvided for in.1911. It was not right that tho ratepayers, who had contributed so much to the sinking fund of the loan, should not. havo some of the benefits of tho over-subscription, but special' legislation would,have to be procured to give effect to that. .'..-.'■ The matter was referred' to tho Finance Committee. /