MONEY FOR INVESTMENT

New Zealand Herald, Volume LXIX, Issue 21326, 29 October 1932, Page 8

MONEY FOR INVESTMENT

CITY DEBENTURE SALES £BO,OOO IN FOUR MONTHS MARKET GREATLY IMPROVED A distinct improvement in the financial market is revealed by the recent experience of the Auckland City Council, which in the past four months has sold debentures to a total value of £86,200. This is taken to indicate a greater readiness on the part of investorS >v to take up local body securities, whereas some months ago they were inclined to leave their money on fixed deposit until they could see how the economic position was likely to develop. The Mayor, Mr. G- W. Hutchison, said yesterday that at March 31 last the council had expended £127,52,2, of which £109,622 was in respect of loans authorised but not, issued, and £17.900 was paid out to make the sum required for the redemption of loans for which insufficient sinking funds had be.prt provided. In the early part of the new financial year it was not found possible to raise any of this money, but since July 1 the council had sold debentures to the value of £36.200. Of this sum £56,074 formed part of the £127,522 mentioned, £20,826 was in respect of loan works now being carried out, and £9300 had been applied for Redemption of a, loan maturing in tho current financial year. It was explained by Mr. Hutchison that two of the loans involved wero authorised at the new rate ot 5 per cent, but the council obtained permission by Order-in-Council to raise this rate to, per cent, and as the debentures were not, issued until, after May of this year they were not subject to the 10 per cent stamp duty imposed by the National Expenditure Adjustment Act. It- is likely that these features accounted for the debentures being regarded, as a particularly good investment.