A LOAN AT 51 PER CENT.

Manawatu Times, Volume XLVI, Issue 2478, 19 October 1922, Page 4

A LOAN AT 51 PER CENT.

The Horowhenua Hydro-Electric Power Board has succeeded in raising a loan of £BO,OOO under particularly favourable circumstances when compared with loans raised by some local bodies within our knowledge. The negotiations were left in the hands of the chairman and secretary, who did not show any undue haste in the matter. Indeed their inquiries were somewhat protracted and involved a careful investigation of the; advantages of the London market as compared with private loans from ! financial and banking institutions.! After reporting progress to the Board! in committee at various stages, the] executive officers were empowered to. clinch negotiations on the best pos-| sible terms, and they reported to J Tuesday's meeting of the Board that' they had succeeded in securing £BO,OOO from the Australian Mutual Provident Society at 51 per cent, for a term of 20 years. Altogether the transaction appears to have been a very business-like one. Be-1 sides the very fair rate at which the money has been obtained, it is stlpu-j lated that no procuration fee is to be payable by the Board; the money is to be provided in Levin free of exchange and is to be paid as required during twelve months, interest to be charged only when the money is received. There is no necessity for pointing out once again that the A.M.P. Society is the same institution from which the Palmerston North Borough Council borrowed its now famous £1 SO,OOO loan at 7 per cent, and that the difference between the two rates of interest represents a dead loss to the ratepayers of Palmerston North of £27,000. Our main concern in quoting Horowhenua's success is to show that there is no reason why the Manawatu-Oroua Power Board should not secure the money it requires at, a reasonable rate of interest and without any undue delay. __