RATE OF INTEREST.

Auckland Star, Volume LI, Issue 193, 13 August 1920, Page 6

RATE OF INTEREST.

COMPETITION OF LOCAL BODIES. (By Telegraph.—Parliamentary Reporter.) WELLINGTON, Thursday. "If 'I did away with the limitation of the rate interest paid by local bodies, w<? would have interest up to S per cent within a few wecke," declared Mr. Massey to-day, when this question was raised by Mr. J. A. Tlanan. The latter urged the Government to > oneider the bad ofTeot upon tho money market of; allowing increased interest to be paid by local bodies, and of permitting them to outbid each other in r:ii*ing Igans. He thought it durable to group all local bodies loans through the Govern-j ', nient. Mr. Massey agreed that there was] hardly a lncal body not raising loans (it: present. The Government had come to | the conclusion that no local bod/ should! pay more than oj per cent. He though j it unwise of Wai bodies coming so much into competition; if they would wait patiently until labour and j material became more plentiful, they] would be better oIT. lie had seen a P able from England ftatir.g that a large and reputable Srm was offering ten perj cent for leans, and if that sort of thing j obtained in Kngland. it would have an I effect here, except for the fact that fortunately New Zealand seemed to have sufficient money in the country to meet its requirements so long as we could keep it in the country.