LOCAL BODIES' BONDS.
γ-kemxek explains position. NEW ORDER-IN-OOUNCIX. In answer to the Auckland Haiibour Board's protest as to the rate of interest at -which it is compelled to sell its debentures a letter was received from the Prime Minister this afternoon stating that Section 33 of the Finance Act, 1920, empowered the Minister of Knance to increase the rate of interest provided in the board's own empowering Act.
"It is proposed at once to prepare a fresh Order-in-Council," wrote the Premier, "which, although specifying the rate of interest at 5J per cent, will enable your board to cell debentures at a discount. With the Income Tax Concession recently granted I am inclined to think that you should have no difficulty in disposing of your debentures at such a. price as would not return to the lender any -more than 5J per cent. Feeling confident, however, that your present borrowing will be strictly confined to urgent requirements, I am not imposing any restrictions."
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Auckland Star, Volume LI, Issue 292, 7 December 1920, Page 5
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162LOCAL BODIES' BONDS. Auckland Star, Volume LI, Issue 292, 7 December 1920, Page 5
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