SUCCESSFUL CITY LOAN £235,000 AT 4 PER CENT.

Evening Post, Volume LXX, Issue 36, 11 August 1905, Page 5

SUCCESSFUL CITY LOAN £235,000 AT 4 PER CENT.

A very short sitting of the City Council was held last night, the only business done being a- matter of formality in confirming two resolutions previously adopted by the Council. The Mayor formally moved the confirmation of Council's resolution of the sth ult., striking a special rate of l^d in the £ on .the rateable value (on the basis of the unimproved value) of all rateable property within the City of Wellington as security for the loan of £235,000, and the interest and sinking f&r-d thoreon, authorised by the ratepayer's for an increased water supply, a new destructor, and for public lighting. Before putting the motion, His Worship said that some time ago, when the matter of raising this £235,000 was before the Finance Committee, the question of getting the loan at 4 per cent., instead of at 4£ por cent., as was originally proposed, was discussed. An offer of £96 10s was received, but the Committee decided not to accept it. The hope was expressed that something better than £96 10s might be received, and with this expression of opmioii the Committee left further negotiations in the hands of himself (Mr.' Hislop). Ultimately, he was pleased to say, he received an offer of £9§ net, and this was, of course, accepted, and it was a matter of congratulation that the loan was to be so successfully floated. There would be no expense, excepting k. few guineas for engrossing some papers. According to the cost of floating previous loans, the present transaction meant a. bonus of 10s on every £100. Instead of paying 4£ per cent, at par, it would mean | a saving of £866 a year for 24 years. [ His Worship then read the formal conditions of the agreement, which provided that the interest was payable at London, Molbourne, Sydney, or Wellington. The motion, which included a proposition that the raising of the loan be proceeded with at once, was seconded by Councillor M'Laren, and carried on the voices without discussion. The Council also confirmed a resolution striking a special rate on -Jd in the £ on tho i rateable value, on the basis of the unimproved value, of all rateable property in that portion of the city hitherto known at the Wellington Ward, as security for the loan of £50,000, and the interest and sinking fund thereon, authorised by the ratepayers of the said portion of the city for extinguishing overdrafts, and for meeting additional expenditure, already incurred and falling due, and in firial settlement of all accounts in connection with wood-paving, erection of the Town Hall and organ therein, and the installation of electric tramways. This is popularly known as tho "washing-up" loan. *