MUNICIPAL OVERDRAFTS.
It may not be generally known that local authorities have the power to borrow ononey from private indiyidu-
Ala on the security of their revenues. A municipality with an overdraft on which it pays 5$ per cent., may conveniently raise money from the public at, say, 4 per cent., and save to the borough a good few pounds in a year. It would pay small capitalists to lend their money at call to a borough at 4 per cent., when they only receive 3£ per cent, from the Bank and, 32 per cent, from the Post Office Savings Bank. The Blenher*is Borough Council offered £3OOO to the public last week, and the investment was rushed to such on extent that the amount was secured Tvithm an hour from the time that the office was open. There are local bodies in the Wairarapa which might with advantage pursue this course to relieve themselves of a portion of the interest on their overdraft.
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https://paperspast.natlib.govt.nz/newspapers/WAG19130819.2.16
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Wairarapa Age, Volume XXV, Issue 10713, 19 August 1913, Page 4
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163MUNICIPAL OVERDRAFTS. Wairarapa Age, Volume XXV, Issue 10713, 19 August 1913, Page 4
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