THE WATERWORKS LOAN.

Dominion, Volume 3, Issue 888, 6 August 1910, Page 4

THE WATERWORKS LOAN.

A SUGGESTION,

Now that the City Council has been authorised to borrow £100,000' for its waterworks, a question naturally arises as to what will bo the best method of raising the money to the advantage of the ratepayers. The Mayor (Mr. T. M. Wilford) is in favour of making an attempt to obtain the money, as was done some time ago by a local authority, from a local institution and by instalments, in accordance with the engineer's estimate of the amounts ,that will bo periodically required in the prosecution of the work. If such a scheme could be carried, out there would be a considerable saving of interest, for it would then be payable only on the monthly advances obtained as. tha work progressed. Since the work will necessarily take eighteen months or two years to complete, there is involved a distinct advantage to the ratepayers. Time alone, of course, will show whether it is possible to proceed on these lines. It is stated that there is a likelihood in the near future of the rate of interest on ordinary advances being reduced by some of the lending institutions. Thus the flotation of the city loan when it is required may be possible at better terms than are now obtainable.