LOAN CONVERSION.

Auckland Star, Volume LXIV, Issue 21, 26 January 1933, Page 5

LOAN CONVERSION.

PROPOSAL AT TAKAPUNA.

ANNUAL SAVING OF £6300. The Government's policy in raising the exchange rate was condemned by the Takapuna Borough Council last night, when a resolution introduced by the Mayor, Mr. J. Guiniven, was passed, protesting to the Prime Minister against the artificially-created rate of exchange. The Mayor said Takapuna was not in such a bad position as other local bodies as the result of the Government's latest decision. Fortunately, the council had some months ago paid up its interest in Australia on loans in advance to March next, and by doing so it had saved about £2000. Mr. Guiniven said he had hoped that the Government would have arranged a national conversion scheme, embracing all local body indebtedness, but the raising of the exchange rate had destroyed the possibility of loans domiciled overseas. He thought it might be possible to approach the borough's de-benture-holders with a proposal for conversion of their holdings to a basis of 4 per cent. If this could be brought about it would result in an annual saving to the borough of £6800. The council decided to watch developments before further considering the plan.