LOAN MATURITY

Timaru Herald, Volume CLIII, Issue 22474, 8 January 1943, Page 2

LOAN MATURITY

Repayment Of £500,000 A notably large loan repayment, amounting to £400.000 sterling, or £500,625 in New Zealand currency, has been made by the Auckland City Council in London. The transaction in which three other Auckland local authorities were ncerned. will make a substantial saving in interest charges, for the maturing loan, which was issued 21 years ago in London at 94, bore interest at 6 per cent., and since the raising of the exchange rate in 1933 the equivalent of 7’ per cent, in New Zealand currency had been paid upon it. Of the £400,000 borrowed, the City Council expended £231,400 on street works, including much concrete paving, and £93,600 for tramway purposes. It re-lent the balance in two amounts, £25,000 to the Auckland and Suburban Drainage Board, and £50,000 to the then One Tree Hill Road Board for concreting portions of the Great South Road and Manukau Road. The tramway liability was taken over by the Auckland Transport Board on its formation subsequently. Tire original sinking fund of 11 per cent, being insufficient to liquidate the loan at maturity, the City Council, the Drainage Board and the One Tree Hill Borough Council are raising loans in New Zealand of £167,000, £23.000 and £46.500 respectively to meet their shares of the deficiency. The Transport Board's share will be met from a reserve fund created for such contingencies. The city treasurer, Mr T. W. M. Ashby, said that the City Council’s renewal loan was at 31 per cent., and would definitely be extinguished at maturity in 15 years. The other two were at 38 per cent., and the repayment arrangements were equally complete. PROVED BY POPULARITY Baxters Lung Preserver has been our most popular remedy for generations and continues to grow in favour for the quick pleasant way it gives relief to coughs, colds and sore throats Asthma and bronchitis sufferers also find considerable relief with 'Baxters.'' Baxters Ltd., Colombo St.. Christchurch.