THE CITY'S FINANCIAL POSITION

Evening Star, Issue 17367, 1 June 1920, Page 8

THE CITY'S FINANCIAL POSITION

♦-—~ The following correspondence, which explains itself, haa been handed to us for publication:— Dunedin, May 31. Sir, —I enclose herewith a copy of a letter dated the 25th May, which I sent to the Town Clerk (Mr G. A. Lewin) of the City Corporation, and his courteous reply dated 29th May. Assuming that amounts on deposit by way of tomporary loan (£138,202 4s 3d) were all withdrawn, the position simply would bo as follows : Bank overdraft at 31st March, 1920 £14,665 5 1 Amounts on deposit held at call, if withdrawn 138,202 4 3 Bank overdraft would be £152,807 9 4 I think it is very satisfactory that the corporation liave been able to secure the above deposits at 3 per cent., provided they are able to hold on to them, as it represents a saving in bank interest of 2 per cent., or a saving of 1 to 2 per cent, if a fixed loan were arranged. A continuous Government audit of the books, with the work kept up, would enable the yearly printed balancesheet to be issued sooner, as at present nine months of the new year is passed before the balance-sheet for the past year is finally dealt with.—l am, etc., F. R. Jamison. P.S.r—You published remarks by me on the above subject in the ' Evening Star' of the 23rd December, 1918, which you headed "Civio Stocktaking."" May 25, 1920. The Town Clerk. Sir, —I beg to acknowledge receipt of your letter of 27th March, 1920, forwarding a printed copy of the balance-sheet for year ended 31st March. 1919, for which I thank yon. I shall be pleased if you will let mo know the following:— 1. What rate of interest does Bank of Now Zealand charge you on bank overdraft? 2. Do they allow you the same rate on credit bank balances? 3. What interest do you allow (No. 8) amounts on deposit by way of temporary loan? 4. What was combined bank balance asjper page 11 at 31st March, 1920? 5. What is total amount on deposit by way of temporary loan at 31st March, 1920? 6. When will printed balance-sheet for year ended 31st March, 1920, be printed?—l am, etc., F. R. Jamison. May 29, 1920. Mr F. T?. Jamison. Sir, —I have yours dated tho 25th inst., and havo to reply as follows: 1. The bank charges us 5 per cent, on overdraft. 2. The balances of tho several accounts are amalgamated, and wo are charged interest only on the net amount of overdraft. 3. We pay our depositors 3 per cent.; tho money is held at "call." 4. The total dr. balances at 31st March 1920, was £66,352 16s 6d, and the total cr. balances was £51,687 lis sd. 5. The total amount of deposits at 31st March, 1920, was £138,202 4s 3d. 6. The printed balance-sheet will not be available before November or December, as its issue depends upon the date the Government auditors complete their work.—l am, etc., G. A. Lewtn, Town Clerk.