LOCAL BODY LOANS.

Manawatu Herald, Volume XLIX, Issue 3873, 20 November 1928, Page 3

LOCAL BODY LOANS.

The indications given some time ago that rates of interest on local bodies loans would be-easier are being realised. In addition to the comparative ease with which the Timaru Borough Council had its loan of £18,250 taken at 5£ per cent., the Christchurch City Council, without any special publicity, received applications during the past month, for close upon £30,000 of its £220,000 roading and bridges loan, the interest offered being 5% per cent. A noteworthy fact is that applications' for parcels of debentures at the same rate of interest continue to come in steadily. In view of this state of things there has been some comment on the action of the Christchurch Drainage Board in disposing of £95,000 worth of debentures in its £240,000 loan at 5i per cent, when it is believed that the Board could have disposed of them with ease at 51 per cent. Some institutions, notably the Guardian Trust Office, Auckland, were fortunate in getting in early before the Board realised that it was giving one-quarter per cent, too much. The company mentioned, it is understood, secui’ed £50,000 worth of per cent, debentures. In some quarters it is considered that the Board was ill-advised in not reserving to, itself (as it has done previously) the right to convert the loan at a stated period, ten or fifteen years, and thus secure the advantage of any lower rate of interest that might then be ruling.