OVER £200,000

Evening Post, Volume CXX, Issue 8, 9 July 1935, Page 10

OVER £200,000

THE COST OF EXCHANGE

WHAT CITY HAS PAID

TOTAL FOR FIVE YEARS

A request was made by Councillor P. I\l. Butler at a meeting: of the City Council some little time ago that a return should be prepared showing what the high rate of exchange had meant to the council. The return has now been prepared by the City Treasurer, Mr. C. Collins. In five years the City Council has paid out

no less than £203,014 8s 4d on account of high exchange, the rate of which stood at 10 per cent, in 1931-33 until January 20, 1933, when it was increased by the decision of the Government to 25 per cent.

"Owing to the reduction of the sinking funds by the exchange charges the council has had to increase the renewal loans raised by approximately the amount lost by exchange," states the City Treasurer in a note to the above figures. "This has imposed an additional annual charge. o.n the city for interest and sinking fund beyond what would otherwise have been necessary- I nave worked out this additional charge at the present time at £4410 per annum."

The return is as follows:— 1931-32.—Itate of Exchange 10 per cent. Exchange on Interest, etc. — £ s. d. Tramways 2.239 0 0 Electric lighting 2,762 0 0 General 10,030 0 0 £13,631 0 0 Exchange on remittances for relia.vment of loans — Sinking funds 20,119 0 0 Total for year £35,750 0 0 1032-33.—Exchange 10 jier cent to January 19, 1033; 25 per cent, from January 20, 1933. On interest, etc. — £ s. d. Tramways 2.946 0 6 Electric lighting 2,51(1 0 0 General 12,427 1 4 17,892 1 10 On remittances for repayment of loans— ■ ' Sinking funds _ 21,326 7 3 Total for year £39,218 9 1 1933-34.—Kate of Exchange 25 per cent. On Interest — £ s. d. Tramways ,5,253 14 7 Electric lighting 4,782 18 9 General . : . 25,054 10 0 33,691 9 4 On remittances for repayment of loans — Sinking funds 24,790 3 9 Total for year £00,437 13 .1 1934-35.—Exchange 25 per cent, to July 31, 1934; 24'/j per cent, from August 1, 1934. On Interest — £ s. d. Tramways 5.140 11 5 Electric lighting ■'.034 10 3 General 23,739 4 0 Total for year £33,814 0 2 Estimate for 1935-36.—Rate of Exchange 24V» per cent. £ s. d. Tramways 5.11S 0 0 Electric lighting 4,716 0 0 General ." 23,940 0 0 Total for year £33,774 0 0 SUMMABY. £ s. d. 1931-32 35,750 0 0 1932-33 39,218 9 1 1933-34 C0.4S7 13 1 i 1934-33 , 33,814 G 2 * 1935-30 33-774 ° ° Total for, five years £203,044 8 4 Charged to Departments as under :— - Tramways 20,697 6 6 Electric lighting ..... 19.'If 9 0 General 96,391 1 10 Sinking funds bO,241 11 0 £203,044 8 4