INTEREST RATES

Wanganui Chronicle, Volume 76, Issue 111, 13 May 1933, Page 9

INTEREST RATES

LOCAL BODY LOANS. PROVISION FOR CONVERSION. [ Per Press Association. 1 WELLINGTON, May 12. The Rt. Hon. J. G. Coates, in an interview, draws attention to the need of local bodies taking advantage of the Local Authorities Interest Reduction Loans Conversion Act. A circular has been dispatched to all local bodies, outlining the points Yo be observed concerning loan conversions. The Local Government Loans’ Board had considered the recent legislation, particularly with reference to the stabilisation of interest rates, and the board noted with regret that some local authorities. apparently were content to rely on the provisions ol‘ Part 1 of the Act referred to, under which they obtain an immediate benefit by way of a reduction of 20 per cent, in interest charges. Mr. Coates emphasised the value of effecting conversions as early as possible. Tho object of the recent legislation had been, in addition to giving relief to local bodies, to bring about a general lowering of the rates of interest, thereby substantially aiding the movement to a general reduction of costs. Ratepayers were entitled to ask that advantage be taken of this legislation. Failure to do this might result in the flotation of renewal loans at higher rates than need bo. Mr. Coates reviewed the Government’s efforts to bring about a lower level of interest rates generally, and asked members of local governing bodies to do their part in furthering ‘.ho movement.