BOROUGH LOANS.

Taranaki Daily News, 28 October 1920, Page 4

BOROUGH LOANS.

APPEAL TO LOCAL PEOPLE TO INVEST. At the Borough Council meeting on Tuesday night, his Worship the Mayor (Mr. Jas. Clarke), made a strong appeal to New Plymouth people to invest in the borough loans. The Council have two loans on thd market, £72,000 forhydro-electrieext*i»> sions and £57,000 for 9treet improvements, extensions of waterinains, and other works. Only a small proportion of the loan debentures had been placed, and until more money was available important works must be held up. The flotation 1 cf the loans would be an enormous factor in the future prosperity of th"» town. By investing in the loans New Plymouth people would be serving two purposes. .They would be obtaining a satisfactory investment for their munej and at the same tim» assisting th» future development and prosperity uj the town.

Very large sums had been sent awn.? from New Plymouth for investment in the Christehureh tramway loans and loans of other local bodies. This was to be regretted, as the term* offend by New Plymouth provided a better investment. The New Plymouth loan 3 were short-dated, being for a period of inly 13 years, compared with 20 y»ac» and 25 years currency offered by sums of the other local bodies.

The new provisions in regard to flu debenture tax were now very much in favor of the investor, particularly the large investor. Mr. T. F. Martin, counsel to the Municipal Association, and one of the leading solicitors in New Zealand, had advised as follows: "If a man who is now in the 7s' fid scale (income tax assessment) should have all his income In municipal debentures, he would under the, new clauses pay only the flat rate of 2s Od in the £, which should mike municipal debentures popular with large investors, whilst small men git' refund of excess tax l ." By investing in borough debentures therefore, investors had now an opportunity of not only obtaining a gilt-e<Jged security, but at the same time would save income-tax. In addition, New Vly- t mouth investors would be giving a lead to outside investors, whose money wa» needed for the development of the town. In conclusion, the Mayor urged 'Nev Plymouth people to show'their confidence in the town by making a point of taking l.p whatever debentures , they could ' afford, and so materially helping the town along.—Published by arrangement/