BOROUGH LOANS.

Taranaki Daily News, 30 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 th* market, £72,000 for hydro-electrio extensions and £57,000 for street improvements, extensions of watennains, 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 or the loans would be an enorraon* factor m the future prosperity of tl>» town. By investing in the loans Ne«f Ilymouth people would be serving two purposes. They would be obtaining a satisfactory investment for their m.-ney and at the same time assisting the .ulnro development and prosperi'y uf the town. ■

Very large sums had been sent awn? train New Plymouth for investment in -he Christchurch tramway loans and loans of other local bodies. Thia was to be regretted, as the terms offer-d I.T New Plymouth provided a better investment. The New Plymouth loin* were short-dated, being for a period of ci.ly 13 years, compared with 20 y»a.-J and 25 years currency offered bv some of the other local bodies. v *

_ The new provisions in regard to th* tichenture tax were now very much m favor of the investor, particularly ilvJ 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 EOW in the 7s fid scale (income tax assessm-nt) 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 nnk» municipal debentures popular with large investors, whilst small men .vt refund of excess tax l ." " J By investing in borough fiebentuwß therefore, investors had now an opportunity of not only obtaining a gilt-eiged security, but at the same time would save income-tax. In addition, New Plymouth investors would be giving a les'd to outside investors, whose money was 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 v.p whatever debentures they count afford, and so materially helping *he town alonjj.—Published by amheemsni.