LOWER INTEREST

Hokitika Guardian, 14 July 1931, Page 6

LOWER INTEREST

NEW GILT-EDGE ISSUES

EARLY GOVERNMENT ACTION

(By Telegraph—Per Press Association)

WELLINGTON, July 13

Within the next few weeks it is likely that arrangements will be made by the Government to reduce the rate of interest on new issues of Government securities from 5& per cent, to 5 per cent. If this plan is carried into effect as from August 1, as is. suggested, local bodies will be simultaneously compelled, through the operation of the Local Government Loans Board, to limit the rate of interest on local body loans to 5 per cent. No official announcement is expected to be made until the appearance of the Budget, possibly at the end of this month, when the whole question of interest rates will be covered by the Prime Minister. However, so far as local bodies are concerned, it is understood the Government has made up its mind to arrange a lower rate. The following is am interesting list of the rates of interest paid by the Post Office Savings Bank since its inception, in 1867. The highest amount ever paid was 4A per cent, in 1,874. Four per cent, was paid in 1867, 4J in 1874, 4 in 1893, 3| in 1896, 3 in 1897, 3£ in 1904, 31 in 1907, 3f in 1913, 4 in 1920, and 4 in 1931.

CHRISTCHURCH OBSERVATORY. WELLINGTON, July 13. Mr Forbes stated, to-day, that arrangements had been made to transfer the control of the magnetic observatory at Christehuhch, from the Lands and Survey Department to the Department of Scientific and! Industrial Research. The amalgamation was being effected to bring about closer co-ordin-ation between the observatories at Wellington, Christchurch, and Apia.