CAUGHT BOTH WAYS.

Star (Christchurch), Volume XLIV, Issue 494, 1 July 1932, Page 5

CAUGHT BOTH WAYS.

Question of Interest on Investments. PUBLIC TRUSTEE'S ACTION. (Special to the " Star.”) WHANGAREI, June 30. , " This is a tickler,” said the Mayor, Mr \V. Jones, at a meeting of the Borough Council, when the town clerk reported that the rate of interest on sinking fund investments with the Public Trustee had been reduced from 1 oi per cent to 4 per cent, and also that ' the Public Trustee would not consider buying the council’s debentures unless the sanction of the Local Government Loans Board was received for the rate of interest to be increased to 51 per cent. The Mayor said the sinking fund commissioner had reduced the rate he was paying to the council and would now not take up any loans at less than per cent. “We tried to find a way out of it,” he added, “ but there was a nigger in the woodpile in that by legislation we cannot revoke any resolution making the Public Trustee our commissioner. lam not holding out for a high rate of interest, but when one institution is lending and borrowing at the same time there is something wrong if the difference in the rates of interest is 1? per cent.” Mr L. T. Pickmere suggested that pressure be brought to bear on the Minister to see if some reduction could be made. A resolution to this effect was carried.