FUNDS FOR INVESTMENT

Poverty Bay Herald, Volume LV, Issue 17408, 5 November 1930, Page 6

FUNDS FOR INVESTMENT

RATES NOT REDUCED THE AUSTRALIAN RESTRICTIONS (Special to the Herald.) CHRISTCHURCH, this 'day. Tho experience of the Christchurch City Council in regard to the sale of debentures during the past few weeks has indicated that while there is a considerable amount of money available for investment in gilt-edged securities not a greift deal of it is offering at an interest rate of 5i per cent. During the past three weeks the council has sold debentures totalling £10,600 bearing interest at 5i per cent., but of that amount of money £I6OOO was received from Australia. Ip consequence of the action taken by the banks, however, it is uni likely that any more debentures will bo sold to Australian investors.

The council still has debentures totalling £21,000 available for sale immediately, and a fair number of inquiries has been received from outside of Christchurch. The number of inquiries from local financial houses, however, has dropped off a good deal, and there appears to bo a disposition on the part of investors to hold out for 5| per cent, interest.

The city treasurer stated to-day that there was a better demand for short dated debentures than for those for longer terms. The loans at present being raised by the council were for terms varying from 15 years to 30 years.