LONDON INTEREST

Hokitika Guardian, 14 September 1933, Page 5

LONDON INTEREST

ACTION BY GOVT. DECISION TO PAY DIFFERENCE. (Per Press Association, Copyright). WELLINGTON, September 14. The intention of the Southland Electric Power Board to pay interest on its London loans oil September 15 in New Zealand currency was the subject of a statement by the Minister of Finance (the Hon. J. G. Coates), who emphatically stated that the Government would issue : instructions for the payment in London of the difference required to enable the bondholders to be paid in sterling, and legislation would be introduced during the forthcoming session whereby the Government would obtain from the Southland Electric Power Board reimbursement of the amounts so paid, Mr Coates added that he had made it quite clear to the Power Board that nothing short of payment in sterling in London would meet the position, and if the Southland Power Board did not pay, the Government would, in the national interest, do so.

CHCH. CITY COUNCIL

TO PAY INTEREST IN STERLING

CHRISTCHURCH, September 13

The Mayor of Christchurch, Mr D. Cl. SuLivan, M.P., stated to-day thatthe Christchurch City Council has decided that the Council should pay the exchange on the interest due from it in London or, in other words, that the payments would be made in sterling. The Council, he stated, had also come to a decision at its last ineetu big in C'ommttee, in favour of the conversion of the loans it had raised overseas, and the Finance Committee was instructed to make the necessary representations to the Government to give effect to its decision.

PAYMENT IN N.Z. CURRENCY BEWILDERING ANNOUNCEMENT (I'nited Press Aseo nation—By Electric Telegraph—Copyright.) LONDON, September 12. The “Financial Times” says: “The announcement that the Southland Power Board bonds interest will be paid .at-London in New Zealand currency is bewildering, as Mr Forbes said that there was a normal obligation to pay' it in 'Sterling. Therefore, it appears to be for the •Government of New' Zealand to' see that the bond holders here are paid what is due to them'. There is a statement about a test case.

This does not put the matter in a bright light, as those who have lent the money do not wish to have to sue for their rights. The next move seems to be witli tlie New Zealand Government,