LOANS TO LOCAL BODIES.

Taranaki Daily News, 4 November 1919, Page 4

LOANS TO LOCAL BODIES.

| NO INCREASE IN THE RATE. (By Wire.—Own Correspondent.) Wellington, Last Night. The Minister of Finance told the House to-day that he had been asked to allow local bodies to increase the rate of interest at which they could borrow money from oi to 64 per cent, or to some higher rate. His reply was that the rate of 5i could not be allowed to be increased, as such an increase must have the, effect of raising the rate of interest generally throughout the country for all borrowers. Mr. Nash said that it was impossible.' for local bodies to get money at 5} pet & cent. What were the local bodies to' 1 do? Would the Government come to their assistance? i Sir James Allen said that the ment coulji assist them to the extent of £IO,OOO from the State Advances Office, Mr. Nash: What if they want more than that? Sir James Allen said that the GovernJ ment would do its best to assist theml The Minister referred also to the ad< vances to !»e made to local bodies foij expenditure under the Housing Act. Tha utmost that could be advanced to any') local body at the rate of 4} per centf from the State Advances Office would be; £IO,OOO. If some limit such as this! were not fixed the larger bodies would absorb all the funds available. If any local body required more than this sum, as doubtless many of them would, they would be able to get it, but they would probably have to pay a higher rate for it.