LOANS AND INTEREST

Nelson Evening Mail, Volume LXI, 12 November 1928, Page 11

LOANS AND INTEREST

(To the Editor)

Sir.—ln the report of Air Atmore's meeting at Raimui published in your issue of the 10th inst. Air Atmore accuses Alessrs W. Smith and Hudson of ignorance of the State Advances to Settlers Office and remarks also that ■'•compound interest would he received." We believe Air Atmore is too honest in his convictions to deliberately try to misguide the electors, therefore he is blindlv following the- remarks of Sir ,1. Wind without thinking the matter out for himself, or that he is helpless--Iv at sea in his own financial reasonNo one doubts the financial ability of Sir Joseph, but we all are liable to mistakes. His remarks that he would receive £OOO,OOO yearly as sinking fund which would be reinvested is (rue. but the inference that he would he receiving double interest or interest on interest Is not correct, for the simple reason that the borrowers who repaid this amount would immediately cease to li-iv interest on it. To make it still wni'sp— our interest on £1)0,000,000 would be payable in London on due date, say, 31st •Tune and 3lst December The borrower in New Zealand receives 14 davs grace both on principal and interest Thus the Government would be losing II davs interest on CUSnUOOO interest and' C 300.000 principal each half vcar. Further, unless the principal was reinvested the day if was received further interest would be lost. This shows that far from receiving compound interest we would actually receive a shade less than U; per cent. In f-i■-less to ins tidies will \li \tmore graciously admit Ids mistake. I am, etc., SEVEN PAR. Nelson. I'2th November.