LOCAL BODY LOANS

Manawatu Standard, Volume LVIII, Issue 82, 5 March 1938, Page 3

LOCAL BODY LOANS

GOVERNMENT’S HELP. Per Press Association. HASTINGS, March A. Several local bodies in Hawke’s Bay will welcome the announcement by the Minister of Finance (Hon. W. Nash) that tho Government is taking steps to arrange 3£ per cent, money available for local bodies that had difficulty in obtaining accommodation in the open market. “The Hawke’s Bay Rivers Board has been unable to obtain loan money in the open market at the rate stipulated by the Government,” said the secretary (Mr W. J. O’Connell), in an interview. Tho hoard required £60,000 to complete tho river control scheme now in hand, and it appeared that the hoard was now able to obtain money from the State Advances Corporation. “KILL INVESTMENT.” DRAWBACK TO SCHEME. Per Press Association. HASTINGS, March 4. A serious drawback that will kill a popular avenue of private investment is alleged hv a Hastings official against the scheme mentioned by the Minister of Finance, (Hon. W. Nash), allowing local bodies to obtain loans at 31- per cent, through the State Advances Coroporation. Until 18 months ago it was stated that local bodies were able to raise loans privately at interest which made the loan system a sound and easy investment for private individuals. The new procedure outlined must have a detrimental effect on numerous persons throughout the Dominion who otherwise had invested in local body loans because of the safe remunerative interest rate. In the last 18 months, however, local bodies were obliged to raise loans at 3) per cent. This had not been easy as tho experience of several local bodies had shown that people could not he induced to invest readily at a low rate. The new conditions would mean the filial blow to those who hoped to use loans as the best available form of investment.