THE BOROUGH LOAN.

Taranaki Daily News, 1 June 1922, Page 4

THE BOROUGH LOAN.

The citizens of New Plymouth should feel pleased and gratified that the £142,000 loan required by the Borough Council to pay off maturing loans (with a margin to spare) has been floated at 98, the debentures to bear interest at 5A per cent. The terms are as favorable as could be expected at the present time, possibly more so than was anticipated. It will naturally be a great relief to councillors to feel there is no longer any apprehension of the old loans maturing without the provision being available for their redemption. As a matter of policy it was good business to issue the loan at a discount in order to obtain a favorable rate of interest. Moreover the proposal that when the old loans are being paid off an effort should be made to dispose of the 5-V per cent, debentures of the tramways loans, is certainly to be commended, no matter whether success in that direction is achieved or not. To all intents and purposes securities offered by such municipalities as New Plymouth may be considered as on a par with those denominated gilt edged. We congratulate the council on its good fortune. Although the new loan may be expensive, it is not more than others bf a similar kind. The j terms on which it was raised may he taken as evidence that the reputation of the town and the whole province of Taranaki stands high in the quarter where status counts for much, besides which New Plymouth is placed on a plane equal to that of Wellington, possibly a shadow of coming event®.