BOROUGH INVESTMENTS.

Manawatu Standard, Volume XLIII, Issue 294, 6 April 1921, Page 5

BOROUGH INVESTMENTS.

CR. ELIOTT’S MOTION

In'' accordance with previous notice, Cr. Eliott moved in the Borough Council last night: “That all sinking funds which are available for transfer be withdrawn from the public trustee, where they are earning (say) 5 per cent interest, and re-invested in New Zealand Government inscribed, stock, which at present market price •returns m-" tercst at the. rate of over 7 per. cent, per annum.” , In speaking to the motion, Cr. Eliott stated that the accrued sinking funds- to March 31 amounted to £15,4®,...p1us .interest and bonus, equal to (say) £SOO, a total of £15,966,, From this had.tp he siib j tractcd thc amount already invested in war bonds' namely. £3300, ■ amounts deposited against loans’ duo in April next year, £4995, with interest and instalments to that date, about £3OO. That left available for investment £7371. This#sum, invested with the Public Trustee, earned interest at--5 per cent., ; of £367 a year,_ while the same amount invested in inscribed stock at percent. 4uo 1938 would realise £6 18s 6d per cent.; and at 5 per cent, due 1933 would givo’a return of £7 Is lid. per cent, on the present market price of the stock. The increased interest would thus be at least £l5O a year, and about £3OOO dver tho currency of the loans, .and to this there could be no objection from, the ratepayers’ point of view, while there were other advantages to be gained by transferring the money to tho purchase of Government inscribed stock. ; Hie Mayor, while agreeing that it was a desirable move, thought that tho Public Trustee would object to tho proposal on legal grounds, and suggested that a resolution should bo passed, merely informing the Public Trustee that tho Council was desirous of transferring its money. Ci*. Crabb andvother councillors agreed that it would be a good move if it could possibly be done, and tho resolution was then passed in the form suggested by tho Mayor. . t . ,