THE IRRIGATION LOANS.

Ashburton Guardian, Volume XX, Issue 4477, 25 April 1898, Page 2

THE IRRIGATION LOANS.

What Government is Prepared to do!

The following letters were read at the Oounty Counoil meeting on Friday : —

Ashbnrton County Counoil, January 31, 1898. Sir,— l have the honor by the direction of the Chairman to enquire on what terms (interest including sinking fnnd) ths Government would be prepared to advance the following aama to this Council for irrigation works, via., £5000 Ruapuna dutricb, £21,000 Hinds-RangiUta dietriofc. 3tepi are now being taken under The Water Supply Aob to constitute the above districts, and •. vote of the ratepayers will be taken m due course. As this Council meets ma Friday next, the 4th February, an answer by wire will oblige, so as to avoid any delay. — I have etc., F. Majnwabikg, Clerk. — The Honourable the Colonial Secretary, Wellington.

The Treasury, New Zealand, Wellington, 7th February, 1898. Sir,— la reply to your letter of the 31st ultimo, addressed to the Colonial Secretary, and now referred to the Treasury, I am directed to inform you that the Colonial Treasurer would be prepared, under the provisions of The Government Loans to Local Bodies Acts, to receive from your Council an application for loans of £5000 and £21,000 for construction of irrigation works m the Ruapuna and HindsR^ngitata water supply districts respectively, provided that your Council are prepared to take aU the necessary steps required by the | said Acts to obtain Buoh loans. It must, ; however, be clearly understood by your Council thab not more than £6000 can be paid m any one year on account of such loans, and also that the Treasurer cannot agree to make a loan of a greater amount than £12,000, for two successive years expenditure (it, £6000 for each year). This, however, would nob prevent your Council from agtvin applying (after the expiration of two years) for an additional loan of £12,000, and after a further period of another two years applying for an additional loan of £2000— I have, etc., JA3. B. Haywood, Secretary to the Treasury.

.Ashbu^ton County Council, February 17, 1898. Sir, — The Aahburton County Council will ehortly submib to the votea of the rateptyers proposals for creating three special districts for irrigation purposes. Should the votes be m the affirmative as ejcjpeoted, the Council will require to raisa three sopirate loans of say £5000, £20,000, and £21,000 respectively, to enable them to carry out the necessary works, and the total amount of say £46,000 will be wanted within a period of six to twelve months from the starting of the works. From the enclosed oopy of a letter from the Treasury of the 7 till February, it will be seen that the requisite amount cannot be obtained- m the short time that would suffice for the execut'on of the works, and I therefore wish to learn from you whether you will be pre ared to modify the offer made, as otherwise the Council will be forced to apply elsewhere for the funds required, and would no doubt have to pay a higher rate of interest than the three per ceafc. If on the other hand you can advance the money as promptly as it may bo required, and at the rate of interesb which you have announced that the Government would furnish it for irrigation works m Canterbury, you will materially help these undertakings to which the settlers look forward with the greatest hope.— I have, etc., Edwabd G. Wri«ht, Chairman.—The Right Hon. R. J. Seddon, Colonial Treasurer, Wellington.

The Treasury, New Zealand, Wellington, March 16, 1898. Sir, — In reply to your letter of the 17bh ultimo, I am directed to inform you that the Colonial Treasurer very much regrets that from the mandatory provisions of section 13 of QJhe Government Loans to Local Bodies Aob, 1886, he is unable to modify the termt (as stated m the Treasury letter No. 49 of the 7th ultimo) upon which your Council can obtain loans from the Government for the constrncbion of the irrigation works. I am also to inform you that) your letter now under reply, together with the other correspondence on this matter, has been referred to the Governmenfa Insurance Commissioner, with the view of deciding whether or nob the said loans, or any portion of them, would be considered a suitable investment for the funds of that Department, and a reply has now been received from the Commissioner, to the effect) that it is considered that the said funds oan be more profitably invested m loans on mortgages, than on such loans proposed to be raised by your Council. —l have, etc, Jas, B. Heywoob, Secretary to the -Treasury. — The Chairman, Aehburton County Council, Ashburton.