LOCAL BODIES’ LOANS

New Zealand Times, Volume XLVII, Issue 10956, 19 July 1921, Page 5

LOCAL BODIES’ LOANS

IMPORTANT STATEMENT PUBLIC TRUSTEE EXPLAINS PRESENT POSITION. ADVANCES FROM PUBLIC CRUST. 8 \ Approached to the article tinder the above heading appearing in yesterday’s ‘‘Times,’ 3 the Public Trustee, Mr J. W. Macdonald, stated that very large sums have been lent by his department during the last fejv years to local bodies throughout New Zealand. He further stated that during the present financial stringency preference had been given to them over other borrower in allocating available funds. During the twelve months ended March 31st, 1821, a sum of £942,000 was advanced on loan by the Public Trustee to local bodies, and to private borrowers a sum of .£1,923,000 was advanced. Since April Ist, 1921, further advances, totalling £458,156, have been* paid to various local bodice, and loans amounting t0£668,000 have been granted for payment up to Mqrch 31st, 1922. As the Public Trustee has other very large commitments, it will be readily understood that it is* not possible to grant any new loans at present. Indeed, the Public Trustee states that it will almost certainly be the end of December next before any fresh application can be entertained. The effect of' the present financial stringency has been severely felt by the Public Trust Office. The almost total cessation of realisations of property throughout New Zealand has been one • feature of the stringency, and a notable one in affecting the amount of money available for investment. The stringency has also been felt in other directions; and, as a consequence, a course of prudence is necessary. The present funds are being applied to meet the payment of loans already granted. These loans Were granted on the condition that payment was to be made to meet the convenience of the Public Trust Office' and subject also to the rate of interest current when the money was paid over. This course has enabled, many local bodies to raise the moneys thev require temporarily from the bank till the Public Trustee is ready to pay over. SOUTHLAND’S LOAN. , NO SUCCESS IN LONDON. It is said that Air Rogers, chairman of the Southland Electric Power Board, who returned from England by the Tahiti, found the London money market unresponsive to applications for capital fair the purpose pf carrying out this important work, and had to return to New Zealand with his mission unfulfilled. It was hoped that the sum of £1,000,000 would be secured, but the financial stringency was such that the money was not forthcoming. It is hoped, however, that as the Southland Electric Power Board’s loan stands in a rather more favourable position as regards the State guarantee (a* mentioned in yesterday’s the Government will be able to assist in financing the scheme to the extent of £750,000.