LOCAL LOANS—TACT AND TACTICS
For the conversion and renewal of public loans reliance is being placed on the internal money market. A Government loan of four millions is falling due,'and local authority loans o£ nearly another million are authorised, for the purpose of renewals, for helping sinking funds to redeem, etc. And no doubt there is money in the local market that would ordinarily be attracted by investments of this kind. But a free lending market naturally demands some security. It expects that the rate of interest offered at the inception of the loan shall be maintained, and not reduced later by stamp tax or other legislative interference with the loan, contract. If contracts have been recently altered by legislation, a free lending market will, certainly take note of that fact. And the situation will not be improved if the policy of attracting loan money is replaced by a: policy of driving it. Compulsory lending yields the borrower little. It^bay. yield nothing. Rumours of it dp! no .good. ~.-■■ :■:■:
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Bibliographic details
Evening Post, Volume CXV, Issue 10, 13 January 1933, Page 6
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168LOCAL LOANS—TACT AND TACTICS Evening Post, Volume CXV, Issue 10, 13 January 1933, Page 6
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