THE BOROUGH LOAN.

Wairarapa Daily Times, Volume VII, Issue 2020, 19 June 1885, Page 2

THE BOROUGH LOAN.

To THE Epilpß, . . . Sm.-I notice in your issue of Wednes' day last, a telegraphic message from Palmerston North notifying.fchat the Borough Council of that town had negotiated a loan of £50,000 with the Government Life Insurance Department at £9B, bearing interest at the rate of 5 per cent, op in.

other words, they pay 6 per cent for the first two years, and 5 per cent for theA balance;, of the term—whatever lengtl® that may be, Now Sir, what lam anxious' to know is this—our Council is, lam led to understand, negotiating aloanof £lo,ooo for gas works with, the same depart ment, and the security proposed to he offered is to my mind exceedingly better than anything that the' Palmerston Borough Council can offer. What I mean by this is, that we n'ot only strike a, rate of 6d, but we give the whole of thfL' gas plant also as security. On the other hand Palmerston will have to strike a'" special rate, and collect it too.- Palmerston will be burdened with a loan—Masterton will not; yet in the face of this I' understand that the Masterton Borough Council have some difficulty, in raising the money at. 6| percent, arid they are . not likely to raise it at a less price. It ' appears to-irie that eithor your telegraphic message .is incorrect, or there must be. some bun'glmg on the part of our fin ancifers, ' larn&c., Job Vile. [ The rate of interest for the Masterton loan has not yet been settled, and injj the mean time- the Borough does not deem it advisable to publish details.—Ed W. D.] ,