BOROUGH LOANS.

Taranaki Daily News, 2 November 1920, Page 4

BOROUGH LOANS.

APPEAL TO LOCAL PEOPLE TO INVEST. At the Borough Council meeting on Tuesday night, his Worship the Mayor (Mr. .las. Clarke), made a strong appeal to New Plymouth people to invest in the borough loans. The Council have two loans on the market, £72,000 for hydro-electric exfmwons and .€57,000 for street improvements, extensions of watermains, and other works. B 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 cf the loans would be itn enormous factor in the future prosperity of tlj« town. By investing in the loans Hi\t Plymouth people would be serving two purposes. They would be obtaining a satisfactory investment for their money and at the same time assisting the future development and prosperity of the town. Very large sums had been sent away from New Plymouth for investment i.i the Christchurch tramway loans ami loans of other local bodies. This was to be regretted, as the terms offer.'d by New Plymouth provided a better investment. The New Plymouth loins were short-dated, being for a period of only 13 years, compared with 20 yeacs and 25 years currency offered by s.sme of the other local bodies. The new provisions in regard to th» 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 thfc 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 Cid in the .C. which should mike municipal debentures popular w'th large investors, whilst small men get refund of excess taw" By investing in borough debenture* therefore, investors had now an opportunity of not only obtaining a gilt-edged security, but at the same time iv)itld save income-tax. In addition. New Plymouth investors would be giving a leid 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 up whatever debentures they could afford, and so materially helping the Kwn along.—Published bv arrangement.