THE NEW CITY LOANS.

Dominion, Volume 4, Issue 953, 21 October 1910, Page 6

THE NEW CITY LOANS.

;."-■" TERMS'ARRANGED.,' . X 133.000 AT FOUE'PEE CENT. The Finance. Committee reported to the City- Couiicil: last knight that - : the. Mayor Q&v. Wjiford) had arranged wi.th.. tho A.itlP. Society for the raising of the .£IOO,OOO Waimii main duplication loan, and the ;g33,(KK) Wadestowatramwicr loan. When the matter came before the City Council - last night for oonftrmaiion, the Mayor raid bath the loans' had been satisfactorily arranged for. Tho ,£IOO,OOO loan would be'for. a term, of tweniy-fire years, and- the interest. would •be I per cent, payable..half-yearly. There would be no commission, no agency charges,',and no expenses of.' flotation.' . The society would provide the. money at such times , and in such, sums as /the. council required) the loanto ; be all.taken up by the. city, within three; years from date of agreement.- . Interest. would only be , payable on each instalment.from ; the: date when it was''received by the corporation. This was the most advantageously floated loan since the council came into existence. .-■■■■. ';.-•''-.'■■ . •:■■-.■■■ - ■■'■

■'.: The '^£33,000,10 an, for the. Wadestown tramway would also be-at 4 cent, and for twenty-five years,!but the money must be taken up within one. year, in. accordance, with the stipulation of the council. The. interest would be payable.half-yearly, and only on the amounts; as ,they . were taken by. the council, instead, of tlje ; old terms'of flotation, under which ail the "money had to be paid dowjr'at once, aid a half-year's interest. had' to be paid -in advance.-'.■ The -A.M.P.'.Society; already, had £190,000: in Wellington ■ City Council securities, andi this further ,j6133,000 would, make its' interest in ' the city very large indeed.' The. only cost: to the council, would.be'.'the.bringing of the money over from Sydney,. where it, was payable. That would ; cost 3s. per i£loo. pe desired to congratulate the council; on having got the matter arranged';so"well.'-.. . !

Councillor Fletcher congratulated■•' the Mayor- on.the .fine work. m. 'had :acoomplished -in . negotiating., these .loans,, and the council upon the'/.terms on , whichthe money had- beonisecured. - ■ They, were the hest) terms iiipon- which', money had .ever beenlobtainedfdr the city,'and: the Mayor, deserved ; the thanks and congratulations of- the'.cpnacU:■•■;'.; \'-.- ; ; ■;/'.;'.v.: : .j.- ; -. : \ .''.-,-. .: The .arrangement ..was .confirmed, .and. the.inecessary, steps, to. complete it. were' authorised. ';■■''■■■'-. '■'" '■?'.'■ '■"'■.'■■/ : .-■..'. ; :

';■;';.. A ; SUCCESSFUL, OPEBATION. /. ' 1 It/may he. mentioned, that 'ihe'last big' ■loan' floated by.. the corporation' was for ' .£200,000. It; was\ raised ', in 1907 '.for? the redemption ..of ■ the consolidated ■': \oatt I of. 1876,' :',JB9B'los.Vnett', per:; cent. It Vis', claimed ;; ; that.'.'-in- -respect.,of 'the present =0100,000-loan'.the. bity.has effected .a ; ;g»in;.of..at .least' ~£lsOO/over.; the, best terms, yet/obtaiuedVon. its behalf in the London market, .■■■•-The interest",in,both' <xises is,, at ..'the.sanie perVceiit.. Apart'from ithis ifact, there ;is\ said, to /be a 'considerable gain., arising .'.from.' the ; conditioii. under which",'tie" council' is allowed; :to extend, ithe time, of- takoßg''np. the .loan over; -a, period .of three years,"and /to takeTip the. niohey,in , v snoh;-instalments :.as~-it '.iad?:. think:;fit:tlu' opnneotion", with;'the priced for/, .the'' loon - in.; London, lt.-isv'further to' be.pointed .dirt : .thot the ; in'.' England...has,; since, tho.flotation .of: fche;, JE200;000 " lbahj -increased/the staarp duty on Colonial'debentures:, froth one-half ..per cent to. one; ■peii cent..lf the^stanibi'dutyhad been in ■ 1907'.what it'is noii realised , only 98 per; cent.:net.'; _';:)■,.;.., . '■'ln; resect, 0f:the..£33,000 loan■ the;beher■fits'vto.:the': council ..areVs|ated■-$£be even mpre'.;marked..;\This;;snin', is;.too|small to, beiifloafed ..nrider.; ; the!,.best. : conciti6ns in' Loiitloni ./[is. its/total. aniount'. is ■under'th,e ; 'be. .floated y ohf;thci.'. Stoek^Exchange':- ;If, this; loaii-lha'd'..been "floated tioiis .the- council^,has. -yet''obtained,-;m IJondbh,' , it .would-not: have, realised-more iliah; £95 per cent.. ne't.Vi'On: these figures there is a cleir/.gain of :'j6i6sp'J»ithe.counpil, and \a ■ corresponding/' gain 1 in.'interestto ' that'indicated' above . in'■-. the '[.'ease of J the .£IOO,OOO v ,;:; ; T|iis::gain : is;;nof:Sp. marked- in this .instance.'.'asa.'portion" of. •thjß : 'mohej;'., has. already ■,been v spent, "in conetruction, • and will \ have: to,vpe' jtaken' np '. imniediatel}', '■ and; the ■ ;balarice will.have,' '■.-•.to ]•: "bS.. taken:-.up' 'withiu'->,twelve 'months-'to!'.pay the"cost-ofj:.construotiig' 'the/tramway;'.".',:'■•■.: : '-!v-' : '-.' '- : : -i'l',''■.'■:'.?■■. '■■'■",