INTEREST ON LOANS.
I The Government, under an amendI ment of the laiw passed last session, lias taken to itself the power to raise | the rates of interest to local bodies ! upon moneys obtained by way of loan. I This power was asked for, no doubt, 1 so that the "Dominion would not be embarrassed by the high price of money in tho English market. It was surely not contemplated, however, that the new regulations would affect loans already authorised. If they do, the Government may have to face a charge of breach of faith with local bodies and ratepayers. If the late Government was iSO careless of the finances that it authorised loans at a rate of interest which will entail a loss to the Dominion, the prosent Ministry is bound in honour to abide by such authorisations, notwithstanding that there may be a. hiss. Tho position that has 'arisen is a. voi-y serious one for local ImxKc.s, and will have the effect of restricting the expenditure upon internal development.
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Wairarapa Age, Volume XXXI, Issue 10713, 11 December 1912, Page 4
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171INTEREST ON LOANS. Wairarapa Age, Volume XXXI, Issue 10713, 11 December 1912, Page 4
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