CONVERSION OF LOANS.

Evening Star, Issue 9154, 8 June 1893, Page 3

CONVERSION OF LOANS.

The following report on Sir Julius Voxel's .scheme for the conversion of local bodies' Uius was submitted to the Harbor Hoard .it , liifir meeting this afternoon :-- I li:i\e carefully read and studied Sir Julius , \'.-'el'-circular as a document coiirng from one wlw ha. both in the colony and in the wider financial sphere of London a-sorted a position to be considered as well able to deal with questions , of tinaniv inde.'.l, recognised by not a few as an authority on such que.-tions, whether in relation to the int.-rots of the )>ublic to be operated upon or in wlm ;c interest, the operation for g'ood or evil i is suggested to be cairicd out, or in the interests of the'op.-rato.-. lerognising thus the status of d ■ writer it is certainly with some degree of iieiitancv that in the cense of duty 1 venture to i|-:-ei-t attention to a few points in connection v, iih Hiecirculr.r. I. The writer, although from his colonial experience and knowledge of our municipal and harbor board loms. as well as the re niireniciiU -eiieiMllv of Home investors, by his long residence vi London, fads, 1 think, to define clearlv a course mi [."■•;,.n, or in other word-; die sp'.'ciHr lines upon which local bodies "should urge their :everal C.nei'ii'neiits," unless it be tak'-u as sutlicient indication in the exoressiou " am lagous to those eontelTcl bv the Colonial Slock Acts." 1' The writer recognise- that, locd bodies have no oower to improve the status of their 'o in-, but •■h iV thev mac move their respective Coveriiments t„ take action in a direction that may pro\e beneli/u' That a \ ast saving to the colony might be ~0.,t,.d by liberal at the same time wi-e legislation in regard to local bodies' loans has more than .eve been brought, both directly and m-.lir-erlv. before th • people's representatives, but a ,pirit of ('onservatisin has always been manifested in considering any proposals tending in the direction ind rated, the cry-Must not do anything io pledge the credit of the colony" has always been -utticient to crush out proposals that would relieve die Inn-dens of the people in connection with local bodies, and 1 a-di to what better purpose could the credit'ef the colony be implied. '! Whatever the result might be in the ease ot •i corporation or local body placing a new loan on Hie market under this conditions suggested, die \ i-iier does not, to mv mind, - hoy.- in regard to '. ,vi; already issued how any benefit would accrue 'o'th' local body. I can underdand how the mooo-e.U would benefit present holders but not bo.bes who have already sold their loans. There i, a way however, whereby a benefit to local bodies niight bi, secured in conjunction with the <ii'"'Hstioris of Sir Julius—viz., by the Legislature orovidin" for a Government recognised issue under the conditions he sets forth of an inscribed I).} per cent or 4 per cent, stock to take the place or present 5 per cent., li per cent and 7, per cent, of all local bodies that were will'ng to give to the Covernment satisfactory security for their indebtedness. , „ I It may be that I have not grasped the full .c, ; ,tv> of the circular or the business policy under- |. ing and therefore before atte.notmg to criticise or airlva' such expressions us "defective •• h--il disabilities," "neglect of existing facilities etc "which mayor may not, carry real weight, I ureter is more practical, to stntc in regard to the utagM'llarl.Mrd Board loans: <<> > That-the bonds of the Board s first loan were, bv mort'age to the individua' purchaser, registered, and accordingU' could only be transtVrred by endorsement, it,) This form of bond or debenture the Boar.) ■v'-advised at the time as being 'unpopular, ■nid th* necessary stens were taken to alter them Into "teuer bonds." and all subsequent loans have been issued ill thai ."or.n. . (,-) There is nothing to prevent bearer bom s beine-nought and sold, and passed from hand to Laud the same as a bank note after burnt,' t\nt ; sued, so far as lam awa-e. If so how can they 1„. subject to stamp duty after the firs, operation .' | u converting'into'"bearer bonds," and also convert hi" our f> per cent, into the 5 per ceirt. coii--.li.t-i.tii]-' loan F am aware that extra staino-flitty Ird to be paid,'but hitherto that has been borne I,'.- th.'lioafd- and on the other hand the Hoard have had recoveries of stamp duty m.m the coui-i„i-,ioiieis of inland revenue through the London age.uts having applied and obtained such. liefo-e concluding I take the liberty of adding a ~ari'-r'iph from a, memorandum I had the honor ~f submitting some weeks ago to the Special ( ommittee on financial matters as follows:- 1 vmil.l like to draw attention to the London market, as shown by the Stock Exchange reports I only .piote a few to illustrate my subsequent remarks: - Wanganui, ti per cent, ... tS7 to tie liisborne,spercent 192 o i!B Timaru. 5 per cent tW to i 1 .. Napier,."» per cent «s|'\r ntago, 5 per cent WJ to Wu tirevmouth and Westport, / I per cunt tlrtito £U)4 N,w I ask, how is it that CJreymouth and Wetnoit 1 per cents, stand so well in the market, a .compared to the 5 percent, and ti percent, of the others L have ouoted.' The explanation is tiiat thtv car.-y a (ioverumeut guarantee, \vh.v -.,•>• Why .sliou'd these harbuv board debentures hive a guarantee and others of equally good security have not? Again, I ask. why should • . tilers in one and the same country be saddled with paying 5 per cent, and li per cent, when money could be got more easily at a lower rate of interest as is evidenced by these Stock hxchange , To tain of any risk to the*overni",vnt in givim,'* Ktiarautee can only be tunned muleading, as any guarantee that might be agreed ~oonbv the Legislature could be made perfectly '. t\. bv vesting a rating power over property in -,'nv district obtaining the guarantee before such was g yen. In the case of the < Jtago Harbor Board , Voerc-nt, loan guaranteed would probably sell '-,-■.' premium, and save to the Board, and conse- •, uen IV to the people, nearly £9,000 perannuni-a - ~ni cq'.u,l to what is derived from the whole ex■""n,lllw John 1.. (-Sillies, "- Secretary and Treasurer. The""matter will be considered at the Board's next meeting.

James Burrows, twenty-seven years of ,ve, lately from Masterton, was found at SVaiareka* yesterday lying dead, with the i,op of his head blown off. He had borrowed a, «un to go rabbit shooting, and as he did nJt return at night search was made. It is jiot known how the affair occurred. The Government Life Insurance Department employs a female canvasser in the Hawke's Bay district.