LONDON LOAN?

Auckland Star, Volume LXII, Issue 38, 14 February 1931, Page 7

LONDON LOAN?

SIR H. BEAUCHAMP'S SUGGESTION.

PROPOSAL TO RAISE £2,000,000. The big question to be answered is how to deal with the financial problem of repairing the damage, said Sir Harold Beauchamp yesterday, in referring to the question of restoration in the earthquake zone. He suggested that power should be given to local authorities to raise, a loan in London for £2,000,000. Yhe market was favourable, and he was sure that it was sympathetic. Such a lean should be guaranteed by the Government, and he thought it would be obtainable ft 4i per cent and issued at par. Owing to the high rate of exchange between London and New Zealand, a premium of about 9 per cent could be obtained for the transference of the money. This would amount to £190,000, which could be employed as an additional contribution to the earthquake fund. Sir Harold Beauchamp further suggested that as soon as the money was available it should be placed into the hands of such a body as the Advances to Settlers Office, which should be authorised' to make advances for the restoration of premises destroyed by earthquake and fire. He suggested that these loans should not bo for less than 21. years, and should bear interest at G per cent. He concluded by stating that the expenditure required in connection with the rebuilding would employ a vast amount of labour and material, and would relieve the distress from which I-lawke's Bay is suffering.