PUBLIC OPINION.

Bay of Plenty Times, Volume XLIV, Issue 6591, 20 January 1916, Page 3

PUBLIC OPINION.

Overdrafts, etc.

(To the Editor.)

Sir, —From the reports of recent meetings of tbe Borough Council the finances of the Borough sre in a worse state at present than for many years past. We hear of loans being spent, overdrafts up to the hilt, and the securing of further overdrafts for this work cr that, and practically nothing in the way of trying to put tbe money etill available to the best possible use. There is also talk of undertaking further work by increased overdraft. If it were the personal security of the members of the Council I would say "let them go." but v;hat right have the members of the Council, as n body, to secure these overdrafts— which are practically loans—without consulting those who have to pay the interest? Is there a business man who wishes to work on an overdraft who can do so without ample security, and if that security ha 9to be obtained by guarantee has not the consent of the guarantors to be first obtained and proof of that given to the bank? The ratepayers,"who in this case, are the guarators, are evidently not to be consulted, and if what is suggested h carried out they will be forced to foot the Dill.

Roughly speaking, from the streets loan there remains in the vicinity of £1500 to £2000 for metal. Ihis should be used on those streets where most needed, and put down in the cheapest manner, viz., permanently. At present one hears a lot against the raising of more money, but in practically every case the first year or two after a rate is struck it is at its height, and as time goes on and the town progresses the rate is individually reduced of itself, therefore after spending what money is available a halt should be cried till such time as a loan to continue the work can be carried, and not by making use of backdoor methods such as forcing overdrafts on the people.—l am, etc., A. W. CARMICHAEL.

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