Exchange Rate That Saves City £400

Manawatu Times, Volume LVI, Issue 5566, 3 February 1931, Page 8

Exchange Rate That Saves City £4OO

PAYING OFF AUSTRALIAN LOAN.

By taking advantage of tho present rate *of exchange and paying loan moneys in Australia tho Palmerston City Council hopes to save several hundreds of pounds in tho near future. I When the Council mot last evening the Mayor (Mr A. J. Graham) stated I that a payment of £2520 would fall due lon February 20. In December last there had been a communication from two institutions suggesting that the money be paid in Wellington, At that time there was no change in the exchange rate and it seemed quite advisable to keep the money in New Zealand by sending it to Wellington instead of Australia. Now, however, conditions were very much changed and the rate of exchange had risen to over IS per cent. For every £IOO sent tho Council would ge-t value to the amount of £l.lß 2s (id. In other words it meant the Council would save £ls 0s lid in every £IOO. Cr. Mansford moved that the Council take advantage of the position. He had seen a reference in a Taranaki paper to the effect that local bodies would not be allowed to do this but he asked what the Banks would do were the boot on the other foot? The Council would have no trouble of disposing. of its money through brokers had the Banks taken up the attitude suggested . The present favourable rate of exchange, he felt, would last for some time and it would mako a great difference to the Council finances if the opportunity were not missed. - Cr. Eliott seconded and pointed out that nearly £IOO would be saved out of the £2520 due on February 20.

The Mayor: The money goes out of New Zealand, of course. Cr. Mansford No. Might I explain that the money is paid in New Zealand and all that should be necessary is a transfer of securities and this is probably what will be done. Tho motion was carried.