MATURING LOANS

Evening Star, Issue 17731, 4 August 1921, Page 3

MATURING LOANS

COUNCIL’S SATISFACTORY POSITION Or Tavernar (chairman of the Finance Committee of the City Council), speaking at last night’s meeting, said: The present position of our 6 per cent, loan issue for ten years is as follows: Total of maturing loans, £516,200; less accrued sinking fund, £89,600; leaving amount, to bo reraised, £426,600. Tho amounts provided for to-day are: New money, £96,000; maturing bonds to be exchanged, £115,000 ; a total of £211,000 ; leaving yet to be provided by March 1, 1922, £215,600. So far we have not been able to get in touch with a great number of holders of existing bonds, but an opportunity will bo afforded to do so on September 1, the date on which the next half-yearly payment of interest is due. We are hoping to very materially add to the amount under this heading. The £115.000 referred to as representing the amount of existing debentures that are to be exchanged on March 1 for those of the new issue includes some £90,000 held by one institution, and for which arrangements were made some time ago. The gratifying feature about the position, of course, is that we have been able in a few weeks to command £96,000 of new money. This is all in hand, and the depositors will receive their debentures on March 1. We have over six months yet to find the required balance, and I am sanguine that we shall make an exceedingly good showing when that date arrives. The citizens evidently recognise that in supporting the loan they are engaging in £ profitable and sound investment. There is one very important point I would like to stress, and it is this: Arrangements have been made by which the council will, without charge to the holder, take the custody of the debentures in all cases where the holder requests this. The investor will be given a corticate that > we are holding on his behalf certain particular debentures, identifying them by number, and these details will be inscribed in a register kept at the Town Hall. By this means tho actual custody of the debentures will be assured against loss by fire or other means, and the investor will, for all practical purposes, be on the same footing as the holder of Government inscribed stock. We shall, of course, deposit the debentures in an approved place of deposit, and tho owner of them will bo able to operate on them bv sale or transfer at any time _he wishes to do so. I regard this as an important provision, as it will effectively remove any doubt about the safe keeping of the debentures during their currency. I think we have every reason to be satisfied with the present position, when all tho facts are taken into consideration,