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Evening Post, Volume XCIII, Issue 46, 22 February 1917, Page 2

The fact that the Government it offering more for borrowed money than it will allow local bodies to pay for their loans was emphasised in a letter received by the Borough Council at last night's meeting from the Wellington Investment Trustee and Agency Co. (states, yesterday's Manawahi Standard). The company wrote on Bth February stating that it held three of the borough's debentures of £8950, £7000, and £12550, all due in 1917. The company could not give a definite answer as to renewals then, and the letter continued : ."It appears that public bodies will be placed in a very awk\yard position unless the Minister will move from his present stand of refusing to sanction borrowing at a. higher rate than 5j per cent. Any public company of. any size can invest in the War Loan at 4j per cent free of taxation, which is equivalent to a return of £5 6s 6d per cent. gros3. This is more than the gross amount your debentures return, £5 ss. It must also be admitted the Government securities are a better holding than boroughs'." The company suggested putting the matter before the Minister at once with a view to allowing local bodies to borrow at a.t least as high a. rate as that given by Government securities, otherwise local bodies would be in a very eerious position. On 14th February the company wrote informing the council that under the circumstances the board was not prepared to entertain the suggestion of renewal of the debentures owing to the company, and therefore repayment of the principal would be looked for On due date. The. Mayor reported (hat negotiations wore proceeding for obtaining the money from the Public Trustee, anci no difficulty was anticipated in meeting the .council's obligations.