HAMILTON DRAINAGE LOAN

Waikato Times, Volume 94, Issue 14583, 4 February 1921, Page 6

HAMILTON DRAINAGE LOAN

BANK’S MEAGRE OFFER. “A PIECE OF IMPERTINENCE.” A definite refusal to increase the rale al which the Council may pay m(crest on ils drainage loan mourns was received by Ihe Hamilton'Council last night from Hie Minister of Fnv.ncc lion. W. F. Massey). The writer staled that the figure obtained for Hie ,lehenlurcs should yield such a pi ice as would not, produce to Hm lender a return exceeding 3? per rent. Wil.i regard to the debentures now on sale i y liie Auckland Harbour Board, the money in Ibis ease was reqmred lo pay !<>r material imw on order and about lo ai rive, and il was essenliai l.h 'it Hie money be raised as early as p msdile. A fetter from ihe local manager of Hie Bank of New Zealand dealing wilh II i: same matter, expressed regret tnal hi? head ofliee could only partly provide for the Council's requirement?. He enclosed an extract from Hie hea l i nice letter as follows; —“In the present condition of Hie money mm-kit we see no possibility of the debentures being sold at a belter rate than of to M per cent. In these eircumstan ,vc arc not warranted in locking up £20,000 of our .funds for an in detinue period. Perhaps Hie Council could arrange cither for purchase of the bonds hy one of the Government departments, or for an advance against saimft If that could he arranged we would be prole red to Ibid Hie money temporarily, provided Hie Department makes a definite commitment, even if six or nine months ahead. Failing that we will advance £SOOO against £7500 of debentures, and would suggest that the residents of Hie area to be served hy the drainage works either take up the balance or lend funds to the Council against the debentures pending sale, people who want conveniences must : prepared to pay for them.” or. Barton: Thank you very much I cr. Mason: As though we arc not i repare, j in pay for (hem. The Major said it was apparent that tl.ey were not going to get much ass..' |,anee lr.>iu (lie Bank, lie regarded. lld- lasi remark in the loiter a? gross impertinence. The working classes were already paying a substantial lax lm- light and other conveniences. His Worship added, at a later stage, that it seemed to him, in view of Auckland’s experience, that it was heller for loeai bodies lo gel well into debt and leave Hie Government, or Hie Dank to get them out. Cr. Tidd thought they should accept Hie £SOOO. His Worship agreed, as the money would assist in paying for some of the I lent which was on its way and to liclp with certain of the smaller works. Cr. Snell did not think the attitude o r Hie Minister in giving greater consideration to Auckland because it had goods on tlio water than it did to Hamilton, which was badly in need of drainage, a fair one at all. Cr. McKinnon supported the suggestion that the £SOOO should be taken. as it would cover the cost of linking up certain of the smaller areas that would have to come into the general scheme. Cr. Mason asked if the Prime Minis ler or the (ird<T in Council was the deciding factor in the matter of selling Hm debentures. The Order in Council lived the rale of interest which Hie Council was permilled to pay, hut did old fix any limit at which they cool i mII (heir debentures. Surely they i .mid sell them al market price, yet II e Prime Minister owruled the Order >*i>l said they .should not sell above a I erl ain rale, Cr. Dowry pointed oul that Hie Tailr: nga Harbour Hoard had been deiinitely limited in Hie matter of their loan. Cr. McKinnon said Hie, Council were nominally entitled to sell (heir debentures a| 5i per cent., and were fiirHoolo'rmitled to discount them lo a limited extent. Cr. Latterly did not consider it fanII at Auckland should lie allowed to finance on different conditions lo Hamilton, when the town was crying out for drainage. The Council decided lo accept Hie £7OOO from Hie Bank.