Evening Post. MONDAY, MARCH 14, 1892. MUNICIPAL BORROWING.

Evening Post, Volume XLIII, Issue 62, 14 March 1892, Page 2

Evening Post. MONDAY, MARCH 14, 1892. MUNICIPAL BORROWING.

It will bo remembered that on retiring 1 from thn Mayoralty of tho city in 1890 Mr. C. J. Johnston outlined a scheme by which the immediate burthen of civic taxation might be lightened, and provision made for tho ultimate extinction of the debt itself. This scheme was subsequently submitted to the consideration of the Municipal Conference, but that body gave it very scant attention, and since then the matter has been allowed to drop. This is to be regretted. Mr. Johnston is an expert in finance, and a shrewd business man. Any schome dealing with money matters which he has thought out and put forward is certainly worthy of the most careful and critical consideration. Mr. Johnston is no visionary theorist, but a man of practical experience in large monetary transactions, and he would not be likely to commit himself to proposals which, were

radically unsound or utterly impracticable. That there would bo difficulties m the way of carrying out his proposals he admitted, and po.-sibly he may have under-estimated some of them, such as those arising from local jealousy, but if the principle advocated is a sound one its application might be extended so as to include other local governing bodies than those of the four chief citiea, to which Mr. Johnston proposed specially to apply it. Practically the manner in which he wonld afford relief is by borrowing tho sinking fund for long - dated municipal bonds and re-investing the proceeds at compound interest in the colony. Tho difference between the rate at which, with a colonial guarantee, tho municipalities could borrow in London, and that at which they could invest in this colony, Mr. Johnbton estimates at 2 per cent., and this sum invested at compound interest durmg the currency of the loans would, as ho shows, serve to pay off the principal of both loans at maturity. Mr. Johnston stated, and illustrated, his proposal as follows :— " I therefore suggest that the colony (< should guarantee tho repayment of money tt to be raised for the express and only obt jeot of liquidating in time the present and future municipal indebtedness in- | curred for the superior purpose of im- <( proving, by water supply and drainage, the sanitary condition of the people. A ( | proposal to incur further debt for the " purpose of getting out of debt may sound v a littlo startling, but that such a result (< may bo arrived at iB indisputable. For example, in the year 1880 we borrowed a ' sum of .£130,000 for water supply, and con'^tracted to redeem the bonds 39 years " hence. Now, if under the colony's guaran- " tee tho Council was authorised by Par- " Imment, and by the ratepayers, to borrow "a further £65,000 at 3i per cent., and tho " whole Bum was placed in the hands of "Sinking Fund Commissioners for invest- " mont temporarily in our ownbonds — if such " a chance as I refer to later on presented " itself— upon tho security of freehold estate | " at from 5$ to 6£ per cent, interest (for my " calculations I take the compound interest " at 5£ per cent., as thoro would cortainly be " periods when the whole would not be " bearing tho maximum rate, and thero " would also bo some small annual charges), " thero would be, with the accumulations at " tho end of 35 years (four years before tho ' ' duo date of the bonds), the sum of .£200.000, " or an amount sufficient to pay off tho " .£130,000 and the .£65.000 now pro- | " posed to be borrowed." Tho above extract from our ex-Mayor's speech very clearly defines the nature and operation of his proposal. Thero is no doubt of tho mathematical accuracy of his calculations and conclusions, and the main questions which have to bo detorminod aro rather of a political and comnierci.il, than of a strictly financial character. The first point, the very foundation of tho scheme, is tho colonial guarantee. Thoro would, undoubtedly, bo great difficulty in obtaining thiß if tho scheme only applied to tho four chief cities. Tho country representatives would probably object, and if it wero proposed to extend tho plan so as to include other local bodies, the Harbour Boards wonld prove a stumbling block. The colony, however, would be qntte safo in giving its guarantee to the cities as proposed by Mr. Johnston, and the security would be ample for both guarantor and tho lender. At present tho guarantee might possibly not be worth very much in the London market, but tho day is not far distant, we think, when a large municipal lean bo guaranteed would bo eagerly taken up at Home. Then oomes the question of whether if the money were borrowed it could be re-invested in the colony at a sufficient profit to in timo extinguish the principal. Since Mr. Johnston promulgated his views the new taxation has been introduced by the Government. How far this might affect the original calculations and proposals, if at all, we are not prepared to say, but the uncertainty which envelopes the Government policy, the want of definitoness in their proposals, mußt throw a certain amount of doubt over any large financial scheme in this colony at present. Under ordinary circumstances thero oan bo little doubt that Mr. Johnston's eatimates and expectations would be amply verified. The present moment may not be a very opportune one for carrying out the schomo he has formulated, but as the City is, we hope, about to borrow largely for drainage works, the suggestions whiQh Mr. Johnston offersd some eighteen months ago should certainly bo carefully considered and discussed. Tho City Council would do well to consult financial experts regarding their practicability.

On our fourth page will be found the report of tho Eoofton Mining Exchange, sporting news, bowling records, volunteer items, and a description of tho Union Company's fine new steamer, the Upolu. Tho two House of Commons elections reported in our cable news to-day do not affect the strength of parties. For North Wextord a Parnellite has sucoeedod a Parnellite, and at Kirkcaldy a Gladstonian sucoeeds a Gladstonian. The Minister of Works returned from the South yesterday by the Pengnin. Mr. E. Tregear, Chief Inspeotor of Factories, was also a passenger by tho same vessol. The Colonial Secretary, who is travelling overland from Auckland, is expected to reach Wellington on Wednesday night. The steamer Waihora, from Melbourne in'A Hobart, with an English mail, arrived at the Bluff at 6.40 this morning. Her mails will reach Wellington on Thursday next. Tho constituents of Mr. A. E. Rhodes, M.H.R., have made him a wedding present of a very handsome silver salver. A half-yearly dividend of £2 10s per share will be payable to shareholders in tho Bank of Australasia on Ist April. Tho Athenssum Committee have arranged for a supply of new books to the library of that institution, and these will bo obtained by monthly instalments. The first is already in hand, and tho others will come in each month subsequently. They will at once be issued to subscribers. Messrs. Cuff and Wood (2), tho Southern members of tho New Zealand Athletic Team, arrived by tho Penguin yesterday, and left for Palmerston this afternoon. They will catch the Mahinapua at Now Plymouth tomorrow night, and roach Auckland on Wednesday afternoon. A number of residents of Wellington are anxious that the Rev. Mr. Grubb, an Anglican clergyman from Sydney, who is conducting evangelical services in Christchurch, should hold a mission in this city, and a request to that effect has been made to him. The four-oared outriggor race between tho Wellington Rowin? Club and the Oriental Boating Club could not take place on Saturday afternoon, owing to tho rough weather, but will come off at 6 o'clock this evening. A considerable amount of interest is being taken in the contest, as it is the first in the colony between crows rowing in the new stump outriggers in which all future maiden and junior gig races connected with the New Zealand Amateur Rowing Association are to take place. The orews are as follows :— Oriental— C. Tringham (bow), G. Read (2), W. G. Jones (3), A. Hill (stroke) ; j Wellington— E. D. Barber (bow), G. Lauchlan (2), W. Simm (3), H. Gamble (stroke). Mr. 0. Kcmpthorne will act as starter, while the race, which is for medals given by Messrs. Littlojohn and Son and Messrs. A. R. Hislop and Co., will be judged by Mr. Chas. Hill, sen. The Wellington crew is a shade lighter than tho Oriental four. The last night of Mr. Walter Bentley's dramatic season attracted an overflowing audience at the Opera House on Saturday, when " David Garrick " was repeated, followed by an abridged— a very much abridged —version of " The Taming of tho Shrew." Both pieces went well, especially tho latter, which in the form in which it was prosented is really nothing more nor loss than a farce. At tho fall of the curtain Mr. Bentley came forward and thanked the Wellington public and press for the kindness extended to himself and liis company during the past soaaon, the success of which had been phenomenal. He also paid a high oompliment to his company, each member of which, he said, was a thorough artist. As an old colonist he could only say that it was with tho greatest pleasure he had returned to New Zealand . Having become a shareholder in tho Opera House, he intended to return to Wellington shortly, and till then ho wished the audience au revoiv. Before bidding good-bye to Mr. Bentley and his company, who left for Napier by train this morning, we have to express the thanks of the press representatives to Mr. Charles Bradley, acting manager, and Mr. R. W. Greville, treasurer, for their courtesy during the soaaon. Five drunkards were paraded before Mr. Robinson, 11.M., at the Magistrate's Court this morning. Two first offenders were cautioned and discharged ; William J. Best and William Roberts wero each fined ss, or in default 24 hours' imprisonment; and Thomas M'Guire was fined 10s, or the same alternative. The anniversary of the Wobb-street Primitive Methodist Sunday School was celebrated ye3_terday, when appropriate sermons were delivered — in the morning by the Rev. W. G. Parsonson, in the afternoon by the Rev. L. M. Isitt, and in the evening by the Rev. W. Lee. The congregations in tho afternoon and evening wero capital, but that of the morning was a little thin in consequence of tho weather. The children rendered with good effect some select pieces, Mr. J. L. Wright acting as conduotor and Miss Embury as organist. The annual tea meeting • will be held to-night, when the young people will sing and recite, and an address will be delivered by the Rev. G. Grindley, late of England. The warrant which was issued for the apprehension of John Canning, a seaman belonging to the ship Silberhorn, on a charge ot wilful neglect of duty, was executed on Saturday night, and Canning appeared before Mr. Robinson, R.M., at the Magistrate's Court this morning. Captain Rowe said the accused was an excellent hand when the ship was at sea, bnt when in port he invariably went on the spree, and absented himself from duty. On tho sth inst. ho was sentenced to 48 hours' imprisonment for refusing duty, and on being released came back to the ship for a day, and then cleared out again, and did not show up for five days. His Worship imposed a sentence of 14 days' imprisonment, and ordered in addition the forfeiture of six days' pay, as well as the payment of 7s Court coats. Mr. Robinson, R.M., entered np judgment for plaintiffs, with costs, in the following undefended civil suits whioh were heard before him to-day : — Cameron and Christie v. G. Wills, .£l3 9s, costs £2 Is ; Hume and Son v, B. H. Solomon, £3 13s lOd, costs 6s (execution stayed for a week) ; G. H. Thornton v. 1,. H. «fc Or. Gilbert, £5 9s 2d, cost 14s ; same v. Mrs. F. Bnllott, £6 3s Id, costs 11s ; same v. C. Hodges, .£s l4s, Co3ts lls (to be paid by instalments) ; Jamieson Bros. v. J. E. Lawrence, £7 155, costs JSI Is. Wellington shareholders of the Standard Fire and Marine Insurance Company are reminded that tho usual half yearly dividend is now payable at the company's office, Customhonse-quay.

All efforts to recover tho two fishing boats which capsized and sank in the harbour a few weekß ago have up to the present been unsuccessful. An immediate influx of 200 families is expected in Palmerston North, owing to the railway workshops being removed there. At the Criminal Sessions to-day a fresh panel had to be sworn in. Of course tho usual excuses were preferred. A dairyman urged that as he had 16 cows he should be permitted to go home and milk them. Mr. Justice Richmond, however, did not think the ground was suflaoient. Mr. Jno. Wall, on account of his age, was oscused, as also wero Mr. J. Bourke, who proved he was rheumatic. Mr. C. Jenkins, because he was engaged in tho Government Printing Office, and Mr. A. J. Besyth, on account of his being a clerk in the Government railway goods shed. Mr. Wright, overseer of the Weekly Mail, was refused exemption, Mr. Justice Richmond remarking that he generally excused reporters and editors of daily newspapers from serving, but he saw no reason for excusing the printers of # weekly newspapers. Every man, whether in business of any kind or working at a trade, could no doubt urge that it was inconvenient to sit on a jury. No doubt it was inconvenient, but citizens must put up with this inconvenience so long as trial by jury was the law of the land. The fourth meeting of delegates from bands in the City was held in the Garrison Hall on Saturday evening, relative to the contest that is to be held m Wellington this year. Present — Messrs. T. Herd, F. Oakes, W. Jupp, W. Arthur, G. Gray, J. Corlett, F. L. Dean, H. Cumings, and W. Foster. Mr. Herd was voted to the chair. The delegates from Jupp's Band reported that thoir band would ffivo tho movement their best support, and in addition would guarantee a donation. Tho Johnsonvillo Band also promised to givo all the aid possible, and would also guarantee a donation. It was decided that the canvassing of tho city for subscriptions to the prize fund should begin at once. Tho month of Ootober was mentioned as a suitable timo for tho holding of the contest, but the question was left over for the Association to consider. The Opera House was decided upon as tho place where the contest should take place. It is to bo hoped that the public will liberally support the movement, particularly as the fine bands belonging to the Oamaru, Dnnedin, Christchurch, and Invercargiil Garrison, and : Oamaru Navals, aro coming from the South j to compete. This alone is a sufficient guarantee of tho musical treat to be givon in Wellington. Tho now Orphanage recently erected in Hawkestone-street by the Catholic community is to be formally opened on Sunday next by Archbishop Redwood. Tho Petono Football Club have voted a guinea towards tho expense of sending Home the Representative Athletic Team. Joseph Rhodes, who has been committed for trial on charges of forgery at Blenheim and Palmerston North, was sent across to the Blenheim Gaol to-day, there to await the next sitting of the Supromo Court. Application was mado to Mr. Robinson, 8.M., this morning to commit a boy of 10. named Victor Nicholson, to an Industrial School, on the ground that his mother, a widow, was unable to control him. After hearing statements from Constable Blaok and tho mother, his Worship committed the boy to Bnrnham School, where he will be brought up in the Churoh of England religion. No ordor was made against the mother as regards his maintenance, she being unable to contribute anything. The final rehearsal for Mr. A. F. Hill's inaugural concert took plaoe at tho Opera HousO on Saturday afternoon, and passed off very satisfactory. The concert takes place to-night. At tho request of some of his admirers, and for the behoof of those who would like a littlo of other than classical music, Mr. Hillhai agreed to interpolate in the programme an arrangement of a wellknown melody as a violin solo, which all may enjoy. Wo would again remind our readers of the loctnro on Prohibition that is to be given in the Opera House to-morrow evening by the Roy. L. M. Isitt. As the subject of Prohibition is just now claiming attention the world over, and is manifestly forcing to the front so far as New Zealand politics are concerned, Mr. Isitt may count upon a largo and interested audience. Elsewhero is announced the inaugural concert of the Wellington Choral Society, which is to take placo on Tuesday, the 22nd inst., at the Opera House, when F. H. Cowen's cantata, " Tho Rose Maiden," will bo performed. The soloists need no introduction, all being well known, and as tho orchestral arrangements are also in good hands, the concert may be expeoted to bo a success. Tho plan of seats will be open at Holliday's to-morrow. Mr. N. Lazarus, oculist-opticiau, has requested us to mention that he may be consulted for some days at the establishment of Mr. Kohn, who will act as his local agent. At 2.30 p.m. to-morrow Messrs. Harcourt & Co. will offer at auction 20 sections in the Lower Hutt, being port of the estate of the late Sir Win. Pitzherbert. These sections vary in size from an eighth of an acre to half an acre, aud are close to the Lower Hutt Railway Station. The sections aro all well adapted for building sites, and should command the attention of thosodesiring to secure a home in one of our best suburbs. The terms of sale are exceptionally easy, being 6 per cent. or. the fall of the hammer, 10 per cent, iv three months, and the balance in five years at 7 per cent. A Tery desirable property iv Regent-street, Newtown, will also be submitted. George Thomas & Co. will 'sell to-morrow, on the premises, Moin-streot, Newtown, household furniture and effects, in the estate of A. W. Brown. Cuninpham, BadhamJs Co. will sell to-morrow, on the premises, Hobson-street, household furniture, piano, &c. Churchward & Co. will sell to-morrow, fruit, io. Dresses. — We have now opened out our first shipments of autumn and winter dress fabrics, which have come to us recently by the steamers Tainui aud Kaikoura. We may conscientiously affirm that no finer, moro varied, or woll-solected goods havo over previously passed tho portals of Te Aro House. Dresses. — In tho limited space at our command, there ia not room to givo anything like an adequate description of our new autumn dress goods, but it is sufficient to say that they are of excellent value, of superior finish, well assorted in styles and colourings, well adapted to meet the tastes of our numerous lady patrons. We solicit an early inspection of these, at Te Aro House. Dressmaking. — Our large and commodious dressmaking rooms are still under the same efficient management, and we can guarantee this season, as in all past seasons, instant attention, prompt execution, faultless finish, and perfect fit. Ladies who want their dresses early should at once place thoir orders at Te Aro House. Jackets, Mantles, and Ulsters.— We have opened out a very fine assortment of these, in all fashionable makes, styles, colours, shapes, and sizes. Onr mantleroom is now filled with all the latest novelties, at Te Aro House. — Advt. Aspinal haa had many imitators of his renowned enamel, but he still commands the market. In fact, the sales of this useful enamel are increasing every year. Messrs. Wilkins & Field, of Manners-street, have just imported an unequalled stock of it, comprising not only all the colours of tho rainbow, but almost every conceivable shade of colour. For household use it is put up in small, medium, and largo tins. They have aIBO a special line of yachting enamel and coachmakers' black, put up in half and one gallon tins, which of course comes in at a cheaper rate. They have also special brushes to suit.— Advt. Pianob.— We have just landed, ex steamer Duke of Westminster, ono of the largest shipments of pianos we have yot reoeived, including Lipp & Sohn, Ibach & Sohn, Collard & Collard, and other well-known makers. These instruments are really superior to tho usual shipments of pianos to this market, and nood no trumpeting to sound thoir praise, as their exquisite tone and touch will recommend them anywhere. The _75 guinea piano we aro giving away gratis to purchasers of pianos at our establishment on 2_lst August, 1892, is now on view in our window, and we solicit bnyers to inspect onr stock at once. — Scoullar and Chishohn.— Advt.