DEAR MONEY.

Star (Christchurch), Issue 20076, 12 October 1920, Page 6

DEAR MONEY.

CITY COUNCIL’S EMBARRASSMENT. llio Finance Committee does not see the slightest chance of tho council raising any more money at o’- per cent, stated a clause in the Finance mIT-t ttec f f rei> ° rb 4 t0 the City Counght\ ■ A P er cent £IOO debenture, subject to 2a Od in the poundmeorno tax, is only worth ahbut ln V,OW of , thia Position the Minmittee recommends the council not to incur any loan expenditure, or liabilities on ban account, unless tho money is actually in hand.” Hie recommendation followed on a report by the lown Clerk regarding tho Sdfl T y P ° sition of tho council l l I , noney ; Tho amount at AJ- a ’f d 011 > ns authorised at o, per cent was £129,000, and in ac.dition a ban poll was to ho taken on a proposal to raise £l7 000 nll f!* f»r wler-supply Lmwood and Avonside! The coma i •g^S"?" 4 ,i “ t t, "> as ,vas Offering A actland City Council o! per cent debentures, issued in payment for the atfiiflfi 01 Tt undertaking, at £OO 10s. The intention of the Government to levy 2s 6d in tho pmmd income tax on debentures would Slice the rate of interest on per cent de hentures to £4 16s 3d per cent. To this reduced rate of interest must be added the ordinary mmmo tax that the holder would otherwise have paid, the report was adopted.