LOCAL BOM LOANS.

New Zealand Herald, Volume LVIII, Issue 17764, 25 April 1921, Page 7

LOCAL BOM LOANS.

SOURCES OF BORROWING*

AUCKLAND CITY'S SUCCESS.

OTAGO BOARD'S ATTITUDE.

j>T TELEGRAPH.— OWN COREESIKINI>EXT.]

DUNEDIN-. Saturday. Whilo financial matters were under discussion at the meeting of the Otago Harbour Bu.'ird last evening, the chairman, Air. V. (Jalbraith, drew attention to the fact i'iiat the Auckland City CounrLl had laisrd a loan of £500,000 at 6£ per cent. on the London market with the guarantee of the New Zealand Government;. When Mr. Logan and himself had been in Wellington recently, the Prime Minister had restricted the board to s{, SJ, and finally to SI per cent. They had pointed out Ln Mipport of their request that the accounts cf SuDie bodies, such as the Westport Harbour Board, were guaranteed by the Uove.tviment, and they had suggested that the Government should guarantee aU these loa.ns. Mr. Massey had replied that he was noi prepared to do that, his excuse be.inj; thai it the Government guaranteed the Otago Harbour Board, it would have to Jo it for everyone else, Mr. lialbraith said that, in his opinion, the Auckland City Council had scored pretty decisively. Mr. McDonald : I do not know about that — cent, is a fairly stiff rate of interest.

Continuing, Mr. McDonald said it seemed to him extraordinary that any local body in this country shou«d go to the Condon market for its loans when the five banks operating in New Zealand held deposits of the people's money totalling over £60.000,000. That was an amount which should make it quite unnecessary to co out of New Zealand for money. "It f-trikt's me." added Mr. McDonald, "that the interest charges will soon become too heavy for those who have to obtain money."