DEBENTURES FOR GASWORKS LOAN

Nelson Evening Mail, Volume LXIV, 20 February 1931, Page 4

DEBENTURES FOR GASWORKS LOAN

DIFFICULTY IN PLACING THEM IN LONDON AN EARTHQUAKE EFFECT A letter was received last evening by tlie Nelson City Council from the Bank of New Zealand, stating that the bank could not at present place £16,000 worth of Nelson Gasworks Loan debentures in London. The letter stated that the debentures were unquotable owing to the Hawkes Bay earthquake. The Mayor. Mr W. J. Moffatt. said he could imagine people as far away as England being shy of Nelson debentures, especially as the town was in prominence on account of the 1929 shake. “It is regrettable.” he said, “that while we have been doing all we can to buy British goods and in that way help to consolidate the Empire, we cannot get British money to pay for the goods.” Councillor S. A. Cibbs said the Council was in an unfortunate position, as the first payments fe'l due soon. Some time ago, he explained, the British Government established a fund from which to finance the Dominions in the purchase of British goods. If the fund was still in existence it was for the very purpose for which the Nelson Council wanted money, and he thought the fund would invest in Nelson debentures. Immediate action was necessaxy. he said. The Mayor reported that through the Hon. H. Atmore negotiations were being made with the High Commissioner in London to see what he could do in the matter of placing the debentures. The Mayor considered New Zealand’s financial standing was good at Home. Councillor H. E. A. Washbourn: “We are suffering from the attitude of Australia and their talk of repudiation.” Among the suggestions made for the raising of the money were that the Government, A.M.P. Society and British Insu ratios Companies he approached. A Finance Committee comprising the Mayor, Councillors S. A. Gibbs, and G. Page, was formed to explore the possibilities of placing the debentures.