AUCKLAND LOAN

Nelson Evening Mail, Volume LXVI, 4 July 1933, Page 5

AUCKLAND LOAN

PAYMENT OF INTEREST NEW ZEALAND CURRENCY RESENTMENT IN LONDON (United Press Association—By Electrio Telegraph—Copyright) LONDON, 3rd July. Newspapers quote fully the Auckland tramways explanation of its action cabled through the Bank of New Zealand. The case is coupled with that of Otago harbour, regarding which the board in announcing a reduction of 20 per cent, added : “It- is probable that the board will be issuing a renewal loan in London in the near future, and we confidently trust that the effect of this legislation will not prejudice our position in your estimation.” The “Financial Times” says that the ban on dealings in Auckland tramways on the Stock Exchange continued on Saturday. SOME CONFUSION (Received 4th Julv. 1.20 p.m.l LONDON, 3rd July. The “Daily Telegraph's” financial writer says: “There appears to be some confusion here and in New Zealand regarding the Auckland tramway debentures. The loan was originally issued in New Zealand, but part was offered for sale here in 1922 by the Bank of New Zealand on behalf of the Auckland Tramway Company. This offer specifically provided for payment of interest in London or Auckland, at the holder's option. Consequently the London holders’ position is not exactly comparable with that of the holders of issues made in New Zealand or holders of the Australian issue of Broken Hill debentures. On the latter, according to the Appeal Court decision, interest is payable in Australian currency.” 1

SUGGESTION BY “THE TIMES” (Received 4th July, 1.55 p.m.) LONDON, 4th July. “The Times” says it would seem highly desirable- in the interests of New Zealand’s credit, which has always stood high, that the question be settled by stating a case for hearing by the Courts.