LOCAL BODIES’ LOANS

New Zealand Times, Volume XLVII, Issue 10957, 20 July 1921, Page 5

LOCAL BODIES’ LOANS

THE STATE GUARANTEE ACTING-PREMIER SAYS ALL PROMISES WILL BE KEPT. NO FURTHER! GUARANTEES. A persistent rumour was current in the city yesterday that, though the Government offered to State-guarantee certain local hotly loans lor placing on the London market, oaiug to the pressure brought to bear by the underwriters in louden, the Prime Minister had agreed to abandon the idea, and no furthar local loans would be Stateguaranteed. It was, indeed, stated to Iv doubtful w'h ether even those loans already State-guaranteed would be proceeded with. Sir Francis Bell (Acting-Prime Ylinister and Acting-Finance Minister) was interviewed by a “Times” representative yesterday with regard to the alleged eral>:iri;o upon putting State-guaiv’-ntecd local body loans on the London market. TTANY APPLICATIONS. "The Government.” said the Minister. “is not preventing local bodies going unon the London market for loans, hut it cannot give any further State guarantees. Where. * however, (he added), any promise has been made of any State guarantee antecedent to the present position arising. the State guarantee will be given : but it cannot be given in respect of any future loans. The State guarantee is limited to a very small amount each year; and though that limit hno been extended, the applications we have had are far in excess of tho extended limit.” SOUTHLAND TOWER BOARD LOAN. Asked as to the position in respect of tho Southland Electric Power Board

Wan of £1,000,000, which the board, it has been stated, failed to raise in London, Sir Francis Bell said: “Powers were taken in the Act passed last session to enable the loan to be Stateguaranteed. The State guarantee was promised when the Act waa passed, and it will be given accordingly.”