REDUCTION OF INTEREST

Hawera Star, Volume LII, 5 September 1932, Page 5

REDUCTION OF INTEREST

NEW SOUTH IVALES INTENTION RATE IN STATE LOANS (United Pres* Association —By Electrio Telegraph Copyright.) SYDNEY", Sept. 4. The New South Wales Government will ,shorty reduce the rate of interest on money loaned to municipal or other bodies. This isi regarded as a gesture in the campaign for reducing costs and stimulating "industry. The banks will be expected to follow suit.

OVERSEAS MONEY CHARGES

- CONVERSION EXPECTED

Received 11.20 a.m. to-day. SYDNEY", Sept. 5. The Premier, Mr. B. S. B. Stevens, states that the Cabinet is considering the question of reducing rates of interest to all its debtors. The Government considers this will help to stimulate industry and employment. The “Telegraph” says the maximum rate of interest will be four per cent. The interest on loans to municipalities, corporate bodies and other institutions is as high as 64 per cent., but recently the Government has been lending relief money to as low as three per cent.

The new scheme, if operated, will greatly assist the water hoard and other Government bodies,- also shire and municipal councils. An anticipation of lower rates overseas is behind the move, and it is expected that large conversions will take place before- the end of the year. The Government intends this gesture as more than a hint to private banks and other financial institutions.