EXCHANGE QUESTION

Rotorua Morning Post, Volume 1, Issue 146, 12 February 1932, Page 5

EXCHANGE QUESTION

("Post" Special 'Commissioner)

A VITAL MATTER h^gher rate would placu ; with heavy burden on local kod^es wHat. figures reveal

WELLINGTON, Thursday.-' • •-Th'e effect* which an increase in the; exchdnge rate would have' oh local b'Pdies with * deb'ts ddihiciled in London,; is revealed in figures which were ' ohtaiUed .to-day. _ Ac'cordjng" to" the latest availahle : figures, the total irideBtedness of 689 lo'cal bodies in the bomihiori, cb'unty c'Ouncils, borough councils, land •drainage hoards, hospital hoards, harhoiir hoards,. power hoards; ete., is : £64,052,021.- Of .this .amount,.£l7,715,- - 089 is dohxiciled. in .the United King--dOm-> and interest payahle on that is-; affeeted hy exchange. ■>* » . .. The ayeragec rate of ihterest on|qcal body -loans, domieiled in the United Kingdom, is 5.32 per cent, so,without -exchange, annu'a'l payments : amoilnt to £942,442 14s 8d. The present -exchange of- 10 per- cent. has -the 1 ARect of - plaeing an additional j j£94,000 on to annual payment, and if j >the exchange we'nt xip to 25 per cent., Jocal bodies . in New Zealand would he faced with an annual? payment of £1,213,052, an increase of £270,610-' 13s 8d. ... .. . • 1 i.vOp the nomial interest bil} xit is»'of; Interest to note, that the >, dqbt donyir eiled in^New Zeajand ap\Qdnts ;tp £38/137,333, and that domiciied in Axistralia is £8,199,599. . ;