LOCAL BODY LOANS.

Manawatu Standard, Volume LIII, Issue 21, 21 December 1932, Page 11

LOCAL BODY LOANS.

THE LONDON MARKET. DUNEDIN, Dec. 20. Reference to the question of local body loans on the London market was made by the Minister of Finance, Hon. W. Downie Stewart, in his address to the Manufacturers’ Association. Mr Stewart said that when lie arrived in London the market had been closed owing to British conversion operations, but while he was there it had begun to open up again. He had been told by the London financial adviser that the question arose of the accommodation ot local bodies whose loans were falling due. Borrowers whoso loans were due had to be looked after before those whose date of redemption was less imminent. The second aspect of the position was largely technical. A loan raised by a local body in New Zealand did not need to be earmarked for a purpose, said Mr Stewart. It had been stressed that it was sufficient to name a loan as a Dunedin or Wellington loan at a certain rate of interest for a definite period. The purely local question of the purposes to which the loan money would bo devoted did not concern the investors in the ieast, and the financial interests at Home would far rather no mention was made of such details. Mr Stewart said he had asked the head of the Treasury to take up the matter with the Local Bodies’ Association, and he thought something would be done in the matter. _lt would probably require some legislation, but that could be arranged.