THE HYDRO-ELECTRIC LOAN.

Taranaki Daily News, 14 July 1921, Page 4

THE HYDRO-ELECTRIC LOAN.

The success which has attended the efforts of the New Plymouth Borough Council to raise the «ixty thousand loan for hydro-electric extension purposes, is as gratifying as it is welcome. So urgently is rhe work required that the ratepayers gave the council authority to raise this loan without limiting the rate of interest, leaving the council io make the best terms possible. The result thoroughly justifies the confidence of the citizens in the council and the general manager, to the latter being due the credit for obtaining the money. The rate of interest is admittedly high for what is a gilt-edged security, but it is the ruling rate to-day. Fortunately the currency is only for twelve years, aul the loan, even at. seven per cent., will pay the ratepayers, who were faced with the stoppage of works when obligations running into £lOO,OOO had 'been entered into, which meant they would have had to pay interest upon this unproductive work out of rates, as well as bear the cost of the wastage involved by a stoppage of the work. Now with the arrangements entered into with the Bank of New Zealand in respect of the other hydro-electric loan of £72,000, the work can be prosecuted with vigor, and before long the borough will be in a position to supply Inglewood and other districts with power. It may be found advisable to proceed later with the full scheme, of which the present work forms part, if the English firm which is desirous of treating ironsand electrically can assist in the financing, which it has already intimated it is prepared to favorably consider. In any rase, Taranaki itself should be able to absorb several thousand horse-power, and it is the duty of New Plymouth to make provision now for the ultimate development of all available hydro resources in or near the Waiwakaiho. What appeared to be a considerable difficulty has now been got over, and the town manager is to be warmly congratulated upon the success of his efforts, backed up as they were by the member for the district. The securing of loan money from the Government for water extensions was another profitable piece of business. Incidentally it is gratifying to note that the A.M.P. Society, from whom the £60,000 is being obtained, has at last recognised that it does owe something to this country, from which it takes so much in premiums and profits every year and that it should do its part, whilst securing for itself a big rate of interest, in the development of our resources, instead of sending its surplus money outside for investment, a course which, we are certain, never commended itself to its New Zealand policy-holders