LOWER INTEREST RATE
WELLINGTON CITY’S MOVE (Special to THE BUN)_ WELLINGTON, Tuesday. The Wellington City Council has reduced the rate for local loans from 5a per cent, to 51 per cent., and it is probable that this move will be followed by a general reduction throughout the Dominion. Last week the City Council raised £ 20,000 at this rate “over the counter.” The Auckland City Council made this reduction some time ago, the first issue of debentures being to finance unemployment relief works. Since then large amounts have been raised in debentures of from 20 to 35 years' terms. Referring to temporary borrowing, Mr. Brigham said that for the last two years the council had obtained all the money it required in the form of deposits at call at 4 per cent., and was, in fact, constantly receiving offers of deposits which it could not accept. The amount required in this way varied from month to month, but at one period in the current financial year the treasury had as much as £200,000 at 4 per cent. By supplying its temporary needs in this way the council effected a saving of several thousands a year, as compared with the cost of the alternative method of proviidng for expenidture in anticipation of revenue.
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https://paperspast.natlib.govt.nz/newspapers/SUNAK19290116.2.70.4
Bibliographic details
Sun (Auckland), Volume II, Issue 563, 16 January 1929, Page 10
Word Count
211LOWER INTEREST RATE Sun (Auckland), Volume II, Issue 563, 16 January 1929, Page 10
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