LOANS FROM PUBLIC TRUST.

Taranaki Daily News, 19 July 1921, Page 5

LOANS FROM PUBLIC TRUST.

NO MORE TO BE GRANTED. RESULT OF THE STRINGENCY. By Telegraph.—Press Assn. —Copyrigtt. Wellington, Last Night.j The Public Trustee states that very large sums have been lent by his department during the last few years to local bodies throughout New Zealand and during the present stringency preference has been given to them over other borrowers in allocating the available funds. During the year ended March 31 last £942.000 was advanced on. loan by the Public Trustee to local bodies and £1,928,000 to private borrowers. Since April further advances totalling £458,150 have been paid to various local bodies and loans amounting to £668,000 have been granted for payment, up to Marc'll 31. 1922. As the Public Trustee has other very large commitments it is not possible to grant any new loans at present; indeed the Public Trustee states it will almost certainly be the end of December next before any fresh, applications can be entertained. The effect of the present stringency is severely felt in the Public Trust Office. The almost total cessation of realisations on property throughout the Dominion has been one feature and the stringency has been a notable one in affecting the amount of money available for investment, while the stringency has also been felt in other directions. Consequently a course of prudence is necessary and present funds are being applied to meet the payment of loans already granted. These were granted on condition that payment should be made to meet the convenience of the Public Trust Office, subject to the rate of interest current when the money is paid over, and this course enabled many local bodies to borrow temporarily from the banks till the Public Trustee was ready to pay over.