CITY RENEWAL LOANS

Evening Post, Volume CXV, Issue 119, 23 May 1933, Page 13

CITY RENEWAL LOANS

QUESTION OF RATE A, number of formal'resolutions confirming the raising of renewal and -repayment'loans were passed by the City Council at a special meeting yesterday afternoon. .Councillor W. H. Beunett presided in the absence of the Mayor (Mr. T. C. A. Hislop). ... When the ; Wellington City (Onslow District) Water and Drainage Loan, 1923, Renewal Loan, 1033, came up, Councillor It. McKecn,. M.P., remarked that the council would no doubt be shortly goiug into the nmtter of the 4 per cent, loans' conversion which had been mooted. Why, then, raise them at Wa per cent.? He suggested that the matter remain over until more -was known of the possibilities. The Town Clerk advised him that this particular loan did not come under that conversion. Mr. McKeen s"aid lie understood that My. Forbes was to interview the authorities in the Old Country with a view to converting standing loans. The Town Clerk remarked that Mr. Forbes had also said that legislation would be required to do what was suggested. The council was at present paying an overdraft rate to a London bank, Baid Councillor Bennett. The bankers had I agreed to take up those debentures at 4% Eer cent, instead of the Q% per cent, now eing paid. ; i Councillor McKeen raised the point that if the Government would permit the con- ' version,-it might mean getting the loan at 4 per cent, and he thought that if that were possible they should do it. Councillor M. I<V Luckie thought that the question of considering the conversion of English loans before they were due was not advisable at this stage. Legislation would be required, and there was the question of exchange. . ■ '