LOCAL BODY LOANS

New Zealand Herald, Volume LXXI, Issue 21830, 19 June 1934, Page 5

LOCAL BODY LOANS

UNITED KINGDOM HOLDING BLOCK CONVERSION DIFFICULT [from ouh own correspondent] LONDON, May 15 The Evening Standard refers to a proposal by New Zealand municipalities for a block conversion of loans floated overseas and states that the idea is not considered practical in London financial circles. The Standard states:—"New Zealand local bodies have floated a large number of small loans on the London market, and these fall due at different dates, a space of about 30 years separating the earliest from the latest maturities. Holders of bonds would not accept an early repayment, and it would be necessary for the issuing bodies to buy up all outstanding bonds in order to secure a single redemption date for the various loans. "The alternative would be to issue additional short-dated loans to replace those maturing in earlier years until the date was reached when V sufficient proportion of the loans was redeemable to allow of a largo operation. Some consolidation scheme on these lines is highly desirable if the difficulties could be overcome. Interest-saving would be effected on the conversion, and a single large issue standing in the name of New Zealan i local bodies would be more attractive to investors here than numerous small issues." A proposal was made recently by the Auckland Transport Board that concerted action in converting local body loans domiciled in the United Kingdom should bo takon by New Zealand local bodies. TRUSTEES' DIFFICULTIES CONVERSION OPERATIONS COMPLICATED TAX WORK Difficulties attached to trustee business during the past year were mentioned by Sir James Allen in addressing the annual meeting of the Trustees, Executors and Agency Company of New Zealand, Limited, in Dunedin last week. Sir James said that the conversion by the Government of its internal loan indebtedness at March 31, 1933, was a huge undertaking, and threw a great deal of additional work on the staff. The company converted for its clients and trusts some £453,450 of Government securities. Local body conversions were now well under way, entailing a : great deal of additional work, not only attending the actual conversion, but ! also in keeping clients advised of the changes in income. "Another feature of the work under existing conditions is the increasing complications of taxation requirements," said Sir James. "Iri addition to the New Zealand requirements for. income tax and unemployment tax, the Australian Federal authorities are now making assessments against shareholders in New Zealand in respect of dividends from certain Australian companies which were hitherto free of tax in the shareholders' hands. These are i of a most complicated nature, and I would suggest that there is room for an understanding between the New Zealand smd Australian Governments in order to cbepk the growing practice by Australian Governments of taxing outside of their jurisdiction. The practice was started, some years ago with the notorious Queensland Succession Duties Act and the principle is now being applied by other Australian States to income tax. The multiplicity of these taxation demands is extremely irritating." FOREIGN EXCHANGES STEADINESS OF STERLING British Wireless RUGBY, Juno 16 The following rates on foreign exchanges are current, compared with the cabled quotations on June 15 and par:— June 1G June 15 Par. Montreal, dol. .. 4.99% 5.00'/4 4.8G6 New York, dol. . 5.0 a 5.05 4.BGG Paris, fr. .. 76 7 / a „ 7G 7 / 10 124.21 Brussels, belga .. 21.G1 21.01. 35.00 Geneva, fr. .. 15.53 15.51 25.22 Amsterdam, fl. .. 7.44% 7.44 . 12.10 Milan, lire .. 58/2 s&y ia 92.4G Berlin, r.m. ~ 13.23 13.24 20.43 Stockholm, kr. 19.40 19.40 18.159 Copenhagen, kr. . 22.39Vs 22.39'/ a IS. 159 Oslo, kr. 19.90Va 19.90 1 /* 18.159 Vienna, scb. .. 27 -27 34.585 Prague, kr. .. - 121V XR 121V5 164.23 Helsingfors, mark 226% 22G% 129.23 Madrid, pes. .. 3G% 3G7e 25.221 Lisbon, escu. .. 110 110 110 Athens, dr. .. 527 V 527* 375.00 Bucharest, "lei. .. 505 505 .813.6 RiodeJaneiro.mil. 4%d* iV*d" 5.8!)9d Buenos Aires, dol. Sfi'/id* SGVitl* 47.G!9d Montevideo, dol. 38% d* 38% d* 51d Bombay, rupee ".. 18 3-G4d 18 3-64 d lSd Shanghai, dol. .. Hongkong, dol. . 17'/Sd 17'/<d Yokohama, yen . 14Md 14Vid 24.58 d Batavia, fl. .. 7.42 Belgrade, din. .. 'Sellers. CUSTOMS EXCHANGE RATES Rates of, exchange "ruling at the announced dates of departure of the vessels named are shown in the following table. They are subject to confirmation by the Customs Department when the exact time of departure is learned on arrival of the vessels in New Zealand, finally declared rates being marked*: — Sheaf Crown, America, dollars . 5.11 Cnnndian Challenger, Canada, dollars 5.05 Sydney Maru, Japan, yen . . . . 14 9-32 d NEW ZEALAND MONEY ABROAD Current dollar exchanges, as quoted by the New Zealand banks, are as under: — ■» , Buying Sailing United Stales .. 5.15 4.95 Canada . . . . 5.10 4.90 The cost in New Zealand currency of the pound sterling and of the principal foreign units, on the latest quotations, is as follows: Present Prico Par s d h d Australia, pound . . . 20 0.00 20 0.00 London, pound ~ ..24 H. 58 20 0.00 New York, dollar . . . 5 0.35 4 l.:il Montreal, dollar .. . . 5 1.10 4 1.31 Paris, franc . . .. 0 3.02 0 Berlin, mark . . . . 1 10.G5 0 11.74 Copenhagen, krone .. 1 1.38 1 1.22 Yokohama, yen . . . . 1 5.79- 2 0.58 These valuations represent the current rates at which the banks sell drafts payable on demand. DISPERSAL SALES ' GOOD PRICES FOR JERSEYS , [IJV TELKGRAI'H—OWN CORRESPONDENT] PUKEKOHE, Monday Excellent prices were received at the dispersal wale to-day of the Linley pedigree and grade Jersey h°rds. in. Jho estate of the late Mr. J. D. Watkin, of Puni. Ptikokolie. A total of 131 head of grade cattle was offered and 40 head- of pedigree animals. Grade cows realised from £5 to £lB. and the pedigrees from sgns to 2Sgns. Horses brought up to 44gns. Very young Tamworth sows, £3 7s 6d, and sows with litters, £9 15s. FIXTURE AT WHAKATANE [BY TELEGRAPH —OWN CORRKBFONDKNT] WHAKATANE, Monday The New Zealand Loan and Mercantile Agency Company, Limited; reports on a clearing sale held on account of Mr. C. Middlemas at the Whakatane ealeyards today as follows:—Best finality Jersey cows, July-August calvers. realised £'s 2s to £0 15s; late calvers and aged Jersey cows. £1 10s io £4; Shorthorn and Holstein cows, £2 5s to £5 2b Gd Jersey heifers, close to profit, £3 5s to £5; yearling Jersey heifers. £2; Tam-worth-cross sows, in pig, £1 10s to £3 13b 6d; six-year-old draught gelding, £36; aged draught gelding. £2B. The sale was attended and bidding was keen, throughout.