SINKING FUND LEGISLATION

Poverty Bay Herald, Volume LIX, Issue 17920, 26 October 1932, Page 2

SINKING FUND LEGISLATION

(To the Editor of the Horald.) Sir, —Whilo tlie Public Trustee alleges the Mortgagors Relief Acts as the main reason for the extraordinary legislation that he is now instrumental in introducing to prevent local bodies uplifting their sinking funds ItO/li him, 1 would like to point out that the Public Trustee must hold large advances to local bodies and (government bonds, which are not affected by the Mortgagors Relief Acts., In order to redeem his liability to repay to local bodies requiring to uplift their sinking funds from him, could the Public. Trustee not either sell and realise the ' local body and Government loans, or, alternatively, why should he not offer to hand over to the local bodies approved Uovernmeut or local body securities held bv him! These securities would return to the local bodies a greater interest than that now offered to them by the Public Trustee, and I fail to see what jusiflcatiou the Public Trustee has for introducing legislation to protect himself from local Sddies’ demands, v-htrti he could satisfy them by transferring to the local bodies concerned bonds of otlier similar t ' institutions or of the Government, which would return to the depositor a higher interest than the Public Trustee is him- * self prepared to pay-Vobrs,^.^