CONVERSION OF LOANS

Wanganui Chronicle, Volume 79, Issue 18, 22 January 1935, Page 5

CONVERSION OF LOANS

LARGE DUNEDIN AMOUNT. : I AUCKLAND SECOND HIGHEST. ' < DUNEDIN, Jan. 17. The Dunedin City Council claims the ' honour of having carried out the larg- ’ est loan conversion scheme of any local ’ body in New Zealand, under the pre- 1 vailing legislation. In doing so, it has 1 made greater use of the local market 1 for borrowing than has any other body in the Dominion. The conversion operations, which have been carried out by the council’s own staff, coimmenced on October 1 and continued well into December. There has been no dissenting and only £15,500 out of a total of £2,214,700 has not been accounted for. The next highest conversion took place in Auckland, where the amount ' involved was £1,810,175. Auckland went to London for a good deal of its money. The. Auckland City Council converted 131 loan issues, aggregating £1,810,175,

and tihe Dunedin City Council 41 loan issues, aggregating £2,214,700. The town clerk Mr. J. S. Brigham, said yesterday that, while it was thus ti*ue that the larger amount involved was that of IDuncdin, the work in the case of Auckland was infinitely greater. There were many more issues, which related not only to original city loans but also to the loans of 10 other local bodies which had amalgamated with the city. Many of the latter were of small amounts and involved considerable detailed work. RAGLAN COUNTY SCHEME. APPROVAAL GIVEN BY COUNCIL. NGARUAWAHIA, Jan. 17. By eight votes to four the Raglan County Council yesterday decided to proceed with its scheme for the conversion of loans amounting to £211,360. Mr. H. Johnstone, member for the Kararnu Riding, stated his intention, however, of moving that the matter

should be reviewed at the March meeting of the council. The annual charge on loans will be reduced from £13,379 to £12,062, or an annual relief of £1317, said the clerk, Air. G. H. Smith, in referring to the proposals. “The majority of the county loans mature in about 15 to 20 years’ 1 time, and as the sinking funds will only pay off approximately 60 per cent, of the respective loans, it is more than likely that high interest charges will again be ruling. On the proposed annual redemption scheme of debentures this would be avoided.” “While it seems there will be some opposition to this scheme,” said the chairman, Mr. H. W. Wilson, “I think it should go through, as it will benefit the county as a whole.” As ridings which had raised loans at a high rate of interest would have an advantage over those which had raised , loans at a low rate, several members ) of the council strongly objected to cob- . version on a riding basis.