AUCKLAND DEBENTURES

Otago Daily Times, Issue 21998, 6 July 1933, Page 7

AUCKLAND DEBENTURES

THE PAYMENT OF INTEREST STATEMENT BY MR FORBES (United Press Association.) (By Electric Telegraph—Copyright.) LONDON, July 4. Mr G. W. Forbes, in a statement on the Auckland debentures, emphasised that the Broken Hill case was not a New Zealand decision, but that of a British court. The Audit Office of New Zealand had decided that, where debentures were issued in London in consideration of money received from London investors in terms of the London prospectus, no objection would be raised to the payment of interest in London in sterling, but the Broken Hill judgment applied to issues in New Zealand. Where the word “ sterling ” appeared in debentures issued in New Zealand, the Audit Office considered that the term was designed to mean New Zealand currency, but the point was arguable, therefore the Audit Office wOnld not surcharge members of local bodies if they paid interest in sterling on debentures transferred to London, The Government considered that local bodies were morally bound to pay in sterling In respect to interest on loans raised in London. If necessary, the Government would validate the payments so made. DEALINGS IN LONDON CEASE LONDON, July 5, (Received July 5, at 9 p.m.) The Financial Times says; “ Owing to the uncertainty of the position jobbers ceased dealing in Auckland Tramways oebenturos last Friday and no quotations have been published in the official list since Thursday. Quotations have also dropped for Gisborne Harbour 1913-1924 issues and Otago Harbour Consolidation fives.”