LONDON LOANS

Waikato Times, Volume 118, Issue 19765, 21 December 1935, Page 7

LONDON LOANS

PAYMENT OF INTEREST. QUESTION OF CURRENCY.. NEW ZEALAND FUNDS TENDERED. Transport board’s resolution (By Telegraph.— rross Association.) AUCKLAND, Saturday. On the recommendations of its overseas committee the Auckland Transport Board at a special meeting this morning unanimously resolved: - “That in view of the opinion submitted by the Board’s solicitor, steps be taken to obtain an author--itative decision on the question whether interest in London on the 5 per cent or 5£ per cent portion of the Auckland city transport loan of £1,250,000 is payable in the equivalent value of New Zealand currency, and to this end future payments of interest in London be tendered in that equivalent, and the debenture-holders advised that the Board will facilitate judicial proceedings should debenture ’holders wish it, including an appeal to the Privy Council. “Further, that the City Council, as a nominal party to the contract, be requested,to tender such payment and advise debenture-holders accordingly.”

To this resolution two clauses were fcdded, one providing that the £7OOO difference between' payment in New Zealand currency and payment in sterling be placed in a suspense account pending legal action, and another that the facts be placed before the Minister of Finance.

In moving the adoption of the report the chairman, the lion. H. G. R. Mason, said the payment of interest due on January 1 would be made in New Zealand currency.