SCALING DOWN

Evening Post, Volume CXIII, Issue 28, 3 February 1932, Page 10

SCALING DOWN

REQUEST FOR LOWER INTEREST RATE

(By Tclogrnph.—Press Association.)

CHRISTCIIURCH, 2nd February.

Bondholders of the Newi Zealand Farmers' Co-opoi'utive Association of Canterbury, Ltd., nre being asked to voluntarily reduce the rnto of interest which they receive from 6V4 per cent, to 4% per cent, until such times as a dividend is paid on the shares. Tho bondholders have received a circular proposing the reduction. The bonds were originally issued at 7% per cent., with a subsequent reduction to 6% per cent., and at the same time an extension for a further 10 years of the due dates of the bonds. Interest is being paid in full up to to-day. The New Zealand Farmers' Co-operative Association, at the balance-sheet of 31st July, 1931, had a total liability of £884,429 for secured deposit stock, which is the stock affected in the present proposal. A calculation sets the savings in interest payments that would be effected by a reduction of 2 per cent, to 4% per cent, at £17,688 a yeari Ordinary shareholders' funds in the "Farmers' Co-0p.," after being written down, now amount to. £542,043. Includ: ing money on deposit and one or two other items the last balance-sheet showed that the company held slightly over £1,600,000 of the public's money.