LOCAL BODY LOANS.

Taranaki Daily News, 18 January 1921, Page 4

LOCAL BODY LOANS.

THE RATE OF INTEREST AN INCREASE WANTED. The New Plymouth Borough Council recently forwarded a request to the Minister of Finance (the Hon. W. F Massey) for permission to advance the rate of interest which is at present being offered in connection with the raising of the electric light and power'loans of £72,000 and £60,000, and the tramway extension loan of £22,500. In his reply, which was read at the meeting of the council last night, Mr. Massey says: “I have to state that the question of local body borrowing has lately been demanding further serious consideration, and it has been decided that, on account of the present stringency of the money market, the construction of only urgent and important public works should be considered “The works for which your council desires to borrow the large sum of £154,500 do not appear to me to be of a very pressing character. Therefore, in view of the present unfavorable conditions, I consider that the request for authority to borrow the money at a rate of interest in excess of that sanctioned by the ratepayers might be postponed. “I doubt very much whether your council could secure the flotation of the loan, even at a higher rate. In any case I am very reluctant to depart from the statutory rate of interest payable on local bodies loans unless I am satis*, fled that there are special circumstances which clearly warrant my doing so.”

The council did not concur in the Minister’s view as to the urgency ol the works, and decided that a deputa -tion consisting of tihe Deputy-Mayoi (■Cr. Hill) and the general manager (Mr F. T. Bellringer) proceed to Wellingtor on Wednesday to place the position be fore Mr. Massey.