THE MEANING OF INTEREST.
Many people complain of the burden, of interest, 'especially in relation to mortgages, municipal debts and national debts. This burden could be avoided if individuals and public bodies waited to make purchases or improvements till they had the money to pay for Ihem. The man" who waits to buy his farm till he can pay cash for it and all that he needs in the way of farm equipment has no mortgage interest to meet. The municipality which waits to make a road till it has saved enough out of its rates, to pay for it escapes the burden of interest on a loan. Very often, however, the farmer and the municipal council want these things at once, and they borrow the money from someone who has previously saved it. The present value of the road or farm is greater to them than the value in ten or twenty years' time. This difference in value they pay in the form of interest. It is for them to assess the difference and decide whether it is worth paying interest, or whether it would be better to wait. Very often interest is only a fraction of the real value of present possession as compared with deferred - possession. It is a question on which, business men must use their judgment. ECONOMIST.
Permanent link to this item
https://paperspast.natlib.govt.nz/newspapers/AS19340131.2.55.3
Bibliographic details
Auckland Star, Volume LXV, Issue 26, 31 January 1934, Page 6
Word Count
222THE MEANING OF INTEREST. Auckland Star, Volume LXV, Issue 26, 31 January 1934, Page 6
Using This Item
Stuff Ltd is the copyright owner for the Auckland Star. You can reproduce in-copyright material from this newspaper for non-commercial use under a Creative Commons BY-NC-SA 3.0 New Zealand licence. This newspaper is not available for commercial use without the consent of Stuff Ltd. For advice on reproduction of out-of-copyright material from this newspaper, please refer to the Copyright guide.
Acknowledgements
This newspaper was digitised in partnership with Auckland Libraries.
Log in