CITY FINANCES.

Auckland Star, Volume LXI, Issue 27, 1 February 1930, Page 12

CITY FINANCES.

EFFECT NOT SERIOUS, OVERDRAFTS VERY SMALL. CHEAP MONEY AVAILABLE. i The higher bank rate will not affect the city's finances to any appreciable extent. Mr, J. S. Brigham, town clerk, stated this morning that he did noi regard the increased overdraft rate 01 one-half per cent very seriously, for tiit reason that the City Council made a practice of obtaining money from sources other than the banks. "Although the banks have always been ready to assist us financially," said Mr. Brigham, "the accommodation which we required has never been very heavy, nor is it anticipated that it will be in* future. We have- always found that there was plenty of money available for our needs at call. This money the City Council has in past times availed itself of during the financial year, at periods when money was necessary." Mr. Brigham said the policy of accepting money at call at a much lowei rate than that given by the banks for fixed deposits had saved the city thousands of 2'ouuds. For that reason the increased bank rate would not affect the city finances materially. "Money is a commodity, and it lias its price," said the town clerk. "If one wants it from the bank, then the price must lie paid, but if it can he obtained elsewhere at a cheaper rate it is unsound to go to the banks. The largest sum we have had 011 loan from the public this year was £200.000. As soon as our revenue began to come in we refunded a large amount of that money." Mr. Brigham said that last year the amount paid in interest on overdra.il. was only £708, as compared with the sum of £5114 paid by way of interest on loans at call. Thus it Avould be seen that a rise of one-half per cent on oveidraft rates, in relation to finances totalling £1,500,000, was a trifling matter, in view of the fact that accommodation at the banks was not utilised to a large extent.