TERMS OF LOAN CONVERSION

Press, Volume XCIII, Issue 27916, 13 March 1956, Page 14

TERMS OF LOAN CONVERSION

CRITICISM BY MR NASH EFFECT ON MORTGAGE RATES (New Zealand Press Association) WELLINGTON, March 12. The notification of the terms for loan conversion by the Minister of Finance (Mr J. T. Watts? will, as they say. meet the market, but an increase of 50 per cent. (3 per cent to 4| per cent.)- to the holders of certain Government stock is another desperate act Government to overcome the difficulties of its own creation,” said the Leader of the Opposition (Mr Nash) tonight. “Its effect on mortgage rates will do more than any single act to retard the extension of home and family life” he continued. “It is in line with the policy that will drive up prices and retard production. It fits in with the return to conditions when the price of money was high and the return for services low.

, There is much more to be saidout those who are fortunate enough to hold maturing loans qualify to receive an increase of 50 per cent, in their annual income from these loans by extending the maturity date by five years, while holders of securities with pater maturity will suffer a further dec \l e -Jr n xr al V e of their capital assets,” [said Mr Nash.

I price of money is advancing—while the income for labour and services tends to decline,” he said.

SAVINGS BANK AT AUCKLAND

CONVERSION OFFER ACCEPTED HOLDINGS OF £981,645 (New Zeatana Press Association t AUCKLAND, March 12. The Auckland Savings Bank will convert the whole of its holdings in Government loans maturing this year to the new Government issues maturing in 1961 and 1966-67. The chairman of the bank (Mr W. H. Rice) announced this today. The holdings amount to £981,645. Of this £512.445 will be converted to the longer-dated stock. Questioned today, the Minister of Finance (Mr J. T. Watts) said he had been’ very encouraged by the reception lending institutions had given to the conversion loans.

DEPUTATION TO MINISTER

AUCKLAND DRAINAGE BOARD HELP IN RAISING LOAN SOUGHT (New Zealand Press Association) AUCKLAND. March 12. The chairman of the Auckland Metropolitan Drainage Board (Mr D. M. Robinson) is not hopeful of Government help in financing the Manukau drainage scheme. He and other board delegates today met the Minister of Finance (Mr J. T. Watts) to discuss the board's financial predicament. The board needs £150,000 to cover expenditure to the end of/this month, and a further £250,000 to enable work to carry on over the next few months. “We had a very courteous and sympathetic discussion with the Minister.” said Mr Robinson later, “but Mr Watts’s attitude implied that if the Government helped one local body it would have to help them all. However the whole thing will t)e considered by Mr Watts and the board’s broker, and either one of them will get m touch with us later. “Whatever happens, the drainage scheme will go on. We cannot contemplate the slowing down or stopping of Auckland’s number one priority job. lam determined we will get the finance one way or another.”