GOVT. ACTION

Hokitika Guardian, 15 September 1933, Page 5

GOVT. ACTION

LONDON ' INTEREST DECISION WELCOMED AT HOME (United Press Association—By Electric Telegraph—Copyright;. LONDON, September 14. The “Financial News” says : “New

Zealand is to .bo congratulated on the ’Government’s firm (resistance to the efforts by the individual local authorities to /meet ’their W-idoii 'interest payments in the depreciated currency of New Zealand. Thi s policy of the Government i s morally Tight because the currency depreciation is largely the result of its deliberate devaluation against Mr Downie Stewart’s advice ” The “Fin racial Times” says “New Zealand ihas decided not to sell its birthright for, a mess of pottage. Thus it “has ''.set an example. that is 'worth a good deal to the world in its present mood.”

rangitikei power BOAIRD

SYDNEY EQUITY COURT CASE

SYDNEY, September 13,

The hearing has begun in the Equity 'Court, . befoi'B acting-Chief Justice Harvey, of the suit on behalf of the Wattgajnm-Rangitikei Power Board, for .a ruling whether the New South Wales Interest Reduction Act, 1931, applies to financial obligations .bv that 80-,rd with the Australian Mutual Provident Society on and after Octohft’’ 1, 1931. Secondly, whether plaintiff is entitled to redeem debentures clue since that date upon payment to

the A.M.P. of the total .capital included in such debentures, together with interest reduced in accordance with the Act.

Plaintiffs contracted lon,ns amounting to £149,999, £IOO,OOO and £6O/000. at various periods between 1924-26. The interest was 5J pe.r cent-., and all tho debentures were .payable at .Sydney. Plaintiff claims to be entitled to reduce the rate of interest to 3 per cent., as prescribed in the New South Wales Interest Reduction Act on all interest obligations, after the date of the passing of the :A.ct, which contention, the defendant Society disputes. The case was adjourned.