BONDHOLDERS' RIGHTS

New Zealand Herald, Volume LXX, Issue 21596, 14 September 1933, Page 11

BONDHOLDERS' RIGHTS

COMMENT IN LONDON t . A CONFUSING ANNOUNCEMENT "NEXT MOVE FOR GOVERNMENT" (Received September 13, G.IS p.m.) LONDON, Sept. 12 The Financial Times says: "The announcement that the Southland Elec-tric-Power Board's bonds are to be paid in New Zealand currency is bewildering, as Mr. Forbes said there was a moral obligation to pay in sterling. Therefore it appears to be for the Government to see that the bondholders are paid what is due. "The statement about a test case docs not put the matter in a better light, as those who lent the money do not wish to have to sue for their rights. The next move seems to be with the New Zealand Government." CHRISTCHURCH LOANS INTEREST IN STERLING CITY COUNCIL'S DECISION [BY TELEGRAPH PRESS ASSOCIATION] CHRISTCHURCH, Wednesday The Mayor of Christchurch, Mr. D. G. Sullivan, M.P., stated to r day that the City Council had decided that the council should pay exchange on interest on loans due in London —in other words, that payments would be made in sterling. The council also came to a decision at the last meeting in committee in favour of conversion of loans raised overseas and the Finance Committee was instructed to make the necessary representations to the Government to give effect to this decision.