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FURTHER SURPRISE

SOUTHLAND BONDS INTEREST PAYMENT DECISION. {Ututal Press Association— By Electric ■ Xeitgraph—Copyright; LONDON, August 24. “The Times’” Oity • Editor says: The Southland Power Board’s decision to pay the future interest to its London bondholders in New Zealand currency has surprised the city, where it Was not unreasonably thought that the Government’s action regarding the Auckland loans, would eliminate furthem similar questions, especially as the Auckland question was complicated, some, bonds being originally sold in New Zealand, while the Southland issues were ■ raised in London under the New Zealand Government’s unconditional' guarantee. The London Stock ,has ceased quoting the bonds, pending developments, although it is confidently hoped that Southland’s . meeting with Mr Coates will result in the Government's assurance that it intends to pay sterling, as it is assumed that Southland's declaration applies merely to payments between the Company and the Government. Nevertheless it is highly desirable in tho interests of Now Zealand’s credit, that tho position be immediately clarified, and steps ,ta)seii to prevent 'a repetition of such ijiddents,

ADVERSE LONDON'COMMENT.

LONDON, August 25,

The “Daily Telegraph’s” financial editor, discussing the Southland Electric Power Board’s decision to pay the London interest in New Zealand money, points out that debentures’issued'hers carry the New Zealand Government’s guarantee for the principal and the interest. ‘

He says: The Southland Board’s decision is even more glaring than the Auckland Tramw'ays Board and the Otago Harbour. Board’s decisons. Persistence, therein would be a shortsighted and costly blunder in view of there being,a mimber of New Zealand localbodies with - loans due for early maturity. Fpr the sake of Ne\v Zealand’s credit, we hope this decision will be reversed qvftfr Friday’s interview with Mr Coates. - < -7

MR . COATEg INTERVIEWED

WELLINGTON, August 25. Members of the Southland , Power Board had a lengthy interview with Mr 'Coates, acting-Premier, in private to-day; re the .payment, of .interest to the British holders of the Board’s bonds! It:;.is .understood that they were informed that the view of the Government was that the Board should pay the interest in t sterling. f~ The meeting was 'adjourned, The members of the Board are considering the .position, and it is expect- * , ed that they will give a n answer to * ' Mr Contes in the morning.

Permanent link to this item
Hononga pūmau ki tēnei tūemi

https://paperspast.natlib.govt.nz/newspapers/HOG19330826.2.32

Bibliographic details
Ngā taipitopito pukapuka

Hokitika Guardian, 26 August 1933, Page 5

Word count
Tapeke kupu
370

FURTHER SURPRISE Hokitika Guardian, 26 August 1933, Page 5

FURTHER SURPRISE Hokitika Guardian, 26 August 1933, Page 5

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