AMERICAN MONEY

Wanganui Chronicle, Volume 73, Issue 370, 13 September 1930, Page 20 (Supplement)

AMERICAN MONEY

SYDNEY COUNCIL’S LOAN. “WARNING” IN A LETTER. The Sydney City Council recently received from the legal representatives of American investors who have lent money to the council a plain intimation that if any change is made in the assets upon which money hag been advanced they should like to be fully informed of the matter. The legal representatives of tno interests concerned, in a letter read at a meeting of th© finance committee, refered to the £2,000,000 loan which was raised for the council in New York. The letter reads:—“ln view of certain statements in the press relating to the electricity department, we have to point out that any change in the control of or in the application of revenue from that department may affect the security of the bonds issued in connection with the above loan. We shall bo glad if you will advise us as early as possible of any proposed legislation whereby it is proposed in any way to affect or alter such security.” The vice-chairman (Aiderman Jackson) : There is no proposal before the council dealing with the matter. It is a letter we might simply receive. Mr McEhone. It is a warning before you do anything. You know what their rights are. Mr Garden pressed for more informa tion. He complained that the com-' mittee had repeatedly asked for infer mation, and was not getting it. ‘‘ Wo are after some money for this council, and I want to know whore we stand,” he said. The debate then turned on the general question of finance. Mr McElhone: The treasurer says that every door has been shut in his face. Mr Garden: I say the door nas not been shut in his face. Ther. is money available now. Mr Parker: Where is all this money you are talking about? Mr Garden: There is American money to be got. The city treasurer explained that the council could not go on the oversea market at the present moment either in England or America for the reason that the Government would not allow such a thing. “You cannot get past the Loan Council,” he said, “and one thing this City Council does not want is to get into the clutches of the Loan Council.” Mr Garden persisted in saying that the money could be got. Mr McElhone: What fairy tales have you been reading? The letter was merely “received.”