RATE OF INTEREST.

Star (Christchurch), Issue 11511, 6 October 1915, Page 5

RATE OF INTEREST.

HARBOUR BOARD CHARGES. SIX PERMIT FIXED. The, Lytfcrhon Harbour Board .spent about ten minutes this morning discussing the rate of interest it should charge a mortgagor who borrowed £6300 Irom it at 5 per cent. The mortgage luus almost expired, and the FintH',o Committee recommended th" board that it should be renewed to three or live years at 6 per cent. Mr J. J. Graham said that it vns not desirable for the Jward to increase the rate ot interest. He moved that the board should renew the mortgage at the original rate. Mr R. M. Spiers seconded the amendment. Mr A. Kay© opposed the amendment. He said that ti per cent v/as the current rate to-day. The mortgagor, indeed, might have to pay more than 6 per cent ii"he v. ont elsewhere. Mr H. F. Nicoi said that the board's operations could not influence the money market in any v.ny. The lowest rate from which anybody could get money from a lending institution at present was 6 per cent, mul the board was justified in asking that rate. Mr F. Horrel. chairman of the Finance Committee, 'said that it had no intention of boosting the rate of interest, but felt that 6 per cent was the ruling rate, and should be charged by the board. "The chairman of the board (Mr M. J. Miller) said that the committee was dealing with the matter in an ordinary business way. No hardship wafc' Sjteing infiicted on the mortgagor. The board should deal as claseiy as possioJe the ordinary ruling rates. Mr Spiers said that it would be better to allow the mortage to remain at o per cent until the moratorium had expired. The secretary said that the mortgagor could claim that privdege at pi ©sent, but there was the risk at the price being increased to ~ per cent when the moratorium expired, while under the Finance Committee's proposals the mortgage was fixed at 6 per cent. _ Mr Spiers said that tne board should not take advanta.ee of the present cumstances, and should not ask the mortgagor to pay a higher price than the board itself naid. Mr Nicol said that the board was giving the mortgagor an opportunity to renew at a lower yu-ice than would bo in operation, proba-.y, later on. He was being well treated. Mr Graham said that he knew private individual lenders who had renewed at 5 per cent for three or four voars. Why should the board p be less eenerous than private lenders? " The amendment was lost on the voices, and the Finance Committee s report was adopted.