AKAROA AND WAINUI ROAD BOARD'S PROPOSED LOAN.

Akaroa Mail and Banks Peninsula Advertiser, Volume LIII, Issue 2814, 20 October 1903, Page 2

AKAROA AND WAINUI ROAD BOARD'S PROPOSED LOAN.

TO THE EDITOR. Fir,— Knowing your valuable paper is always open when the publio interest is oon cerned, I have taken the liberty to forward a cuttiig oub of the "Lyttelton Timeß" which bears very materially upon the above heading, hoping you will have sufficient space to publish it, bicause it mea-B If the local bodies make their application before

these am^ndmsnts become Uw there will be a saving of ■£ per cent for 26 years upon the £6000; It's rather soft solder of the Pre mier to try and let the borrowers down lightly when he is raising the loans £ per dent, and Baying he Is hopeful ab a future period to reduce the rate, which forecast, if It ever comes to pass, would not benefit those who had borrowed under the amendments.—l am, etc, HENRY .PIPER.

[enclosure]. " Certain amendments to the Local Bodies Loans Act Amendment Bill were brought down by Governor's message in the House to night (October 14). The principal amend ment ia the substitution ot a new clause for Clause 7 of the Bill proviously introduced, dealing with the rate of in'ere9t. The new clause reads : — (I) In all loans granted after thepvsing of this Act, the yearly rate of interest and the psriod during which the interest ia payable by the local authority •hal, at the option of the locil authority, be (a) 5 per oentum per annum tor a period of 26 yearß, or (b) per centum per annum for a period of 32 years, or (c) 4 per cent per annum for a period of 41 years. (2) Suoh rptirii • lull bo exercised by the local authority in its application for the loan. (3) At the expiration of the period during which interest is payable, the liability of thelooal authority shall cease without fur ther piym nt In introducing the amendments, the Premier said that he regarded the measure as only a temporary one Be regretted thß necessity of having to increase the rate of interest, but he had to keep faith with the publio creditors. He hopsd to be jn a position to reduce the rate ogam at some future period.

[We regret to say that though proceedings have o mmance ', the loan has not ytt be n provisionally granted, and wi'l be affected by any fresh legislation,—Ed. MAIL