How Loans Are Repaid

Manawatu Times, Volume 69, Issue 204, 29 August 1944, Page 4

How Loans Are Repaid

The doubts that sonie people might have about the war loans raised In New Zealand not being repaid was dispelled by Mr. W. R. Eggers, chief accountant of the . Reserve Bank, when speaking to Palmerston North Rotarlans yesterday. He said every war loan came under the Debt Repayment Act of 1925, which provides that as soon as a loan is raised the Government collects not only sufficient to pay interest on the loan but also an additional J per cent, which is paid Into the Public Debt Repayment Account and is used to redeem any security falling due for payment. In addition, when any part of a loan is paid off the Government pays an additional 3i per cent, into the Public Debt Redemption Account. So that each year the Government pays i per cent, on the total current debt plus 35 per cent, on the amount redeemed since 1925, and these moneys are used for redemption purposes each year.

If no more loa,ns were raised in New Zealand, the whole of the public debt would be repaid in 61 years by this means.

Another essential feature was the spreading of maturity dates.

Welfare of Young Maoris A commendable project has been inaugurated in Levin by Messrs H. MacMillan and N. H. Kingi in the formation of a Young Maori Welfare Club with the object of not only creating a social centre for the Maori youth of the district, but with a view to instructing them in the earlier arts of their race. A class has been formed in .which girls are being taught the art of weaving, and under the supervision of Mrs. R. Williams and Mrs. P Taueke, the class is at present busily engaged In making some 20 skirts (piupiu) and bodices (rapaki taiuko) which are the traditional garments worn by the wahine in the rendition of Maori pois and songs. The girls have adapted themselves enthusiastically to their task and work of a high, order, has beta performed*.