LOAN NOT QUOTED

Taranaki Daily News, 25 February 1931, Page 11

LOAN NOT QUOTED

POWER BOARD’S PROPOSAL.

ADVERSE LONDON MARKET.

Advice that owing io the recent earthquake and th© present adverse exchange position, the London market was not prepared to quote for a proposed loan of £150,000 was received by the Auckland Electric Power Board on Monday. A report to this effect was received from the board in committee, which stated that it had been bo notified by the Bank of New Zealand on February 5, and that the letter had been received, no action being recommended. The letter from the bank, which acts as the board’s financial agents, read: “I have received the following cablegram from London —Auckland Electric Power Board. In view of to-day’s earthquake, advise that market is not pre- , pared to quote for issues at present. I Apart from this, New Zealand stocks < are adversely affected by exchange position.” The letter was signed by the general manager, Mr. H. Chalmers. The proposed loan of £150,000 was

the fifth instalment of a loan of £675,000 which the board decided’ to raise in October, 1028, and which was later authorised at a poll of ratepayers. Instalments of £25,000 and £lO,OOO were raised locally, while a financial institution financed the third instalment of £250,000. The fourth instalment of £lOO,OOO, was raised on the London market, making a total of £385,000 which has been borrowed since the total amount was authorised. .The term of the proposed instalment of £150,000 was to have been 21 years. The secretary and treasurer to the board, Mr. N. M. Speer, stated that the instalment of the loan sought at present was to pay for commitments in London to save the high rate of exchange. Most of these commitments were incurred in the purchase of materials, which it was intended to pay for out of funds to be held by the board in London. At the same time, the board held sufficient funds in Auckland to pay for purchases, and if necessary a portion of these funds would be transferred to England. As soon an the market wa<s again favourable, the bank would c ain a quotation, which would be submitted to the board. Until further notification was received, it was not likely that the board would take any action.