MONEY FROM BANK.
CITY COUNCIL'S DECISION
ADJUSTING DISTRICT FUND
In order to adjust the district fund account of the City Council, it lias been decided 'to raise a sum not exceeding £90,000 by the hypothecation of deben tures.
At yesterday's special meeting of the council it was explained by the town clerk, Mr. J. S. Brigham, that on March 31 the district fund would be overdrawn to the extent of approximately £50,000. The council was prohibited from carrying an overdraft greater than the amount of the uncollected revenii" for the year. That amount would no< be known until the end of the month but it Avas necessary for the council t(. adjust its finances. Attempts had been made to raise the money in London, but without success. Since the earthquake it had been practically impossible to raise local body loan money in London. The Premier had been asked to permit an exemption from the provisions of the Local Bodies Finance Act, but he liad declined. The onlv course now was to hypothecate debentures, and draw against them. The Mayor (Mr. G. Baildon) moved that the council raise a sum up to but not exceeding £90,000, at a rate of interest not exceeding seven per cent, from the Bank of New Zealand, by hypothecating debentures. Mr T. Bloodworth said the council had got into its present difficulty through trying to help the Government by providing for the unemployed. He was of opinion that another determined attempt should be made to get the Prime Minister to agree to the suspension of the provisions of the Act. The council could not afford to give extra thousands to the bank. Mr. J. R. Lundon said it was by no means certain that the council's overdraft would not exceed £50,000. The Mayor's motion was carricd. Mr. Baildon said Strong representations had already been made to the Prime Minister. The passing of the motion would not prevent the council from making every effort to obtain exemption from the provisions of the Act.
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Bibliographic details
Auckland Star, Volume LXII, Issue 72, 26 March 1931, Page 7
Word Count
336MONEY FROM BANK. Auckland Star, Volume LXII, Issue 72, 26 March 1931, Page 7
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