THE HARBOUR BOARD LOAN.
TO THE EDITOR. Sir, —If the Otago Harbour Board goes to London for a loan of £350,000 it will have to pay 5 per cent, for a term of 20 years, and it will have to issue the loan at 98 to suit the underwriters and another 2J p.er cent will have to be paid for flotation expenses The cost of sending the chairman Home vnil be another £IOIXI. Approximately £17,000 will be paid for floating the loan. At the end of 20 years the board will have paid (he moneylenders of London £365,750 approximately, plus capital. Would it not dp belter to float, the loan locally, even if the board had to pay 5J per cent. It would go at par and would only cost i per cent for brokerage. The cost of printing the bonds would have to be borne in either case out of the loan, and by a local flotation the loan could be spread over a series of years. This would be a saving to the people of Otago ; we are sending too much money out of this country that is not bringing ns in any return and that is the surest wav to ruin any country.—l am, etc.. Six Per Cent.
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Bibliographic details
Otago Daily Times, Issue 19761, 12 April 1926, Page 14
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211THE HARBOUR BOARD LOAN. Otago Daily Times, Issue 19761, 12 April 1926, Page 14
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