MUNICIPAL FINANCE

Evening Post, Volume LXXXIX, Issue 33, 9 February 1915, Page 6

MUNICIPAL FINANCE

The statement by the Mayor of the city's financial position, published in yesterday's Post, will, no doubt, have been read with the greatest interest by citizens. The year has been one of extraordinary difficulty for the Mayor and Council. First of all, the revaluation of the city took longer than had been anticipated, with the result that the official demands ior the first instalment of the rates for the year could not be issued until two or three months after the usual time. This meant, of course, that the city was deprived of very necessary revenue during the period of the delay. Tho result is quite clearly shown by comparing the figures for a normal year like 1913-14 with the figures lor last year. During the months of August and September, 1913, the revenue from rates was, in round figures, £38,363 ; for the corresponding months of last year, according to the Mayoral statement, it was about £4282. or £34,000 below normal. Such a deficit in itself was a very formidable emergency to face, but on top of it came the financial shock of the first two months of the war — the same two months, August and September. The position needed some financiug, but the Mayor and Council boldly faced the situation in the spirit of the Chancellor of the Exchequer in the Old. Country and used the ciedit of the city to increase the overdraft from the previously permissible maximum of £50.000 to £75,000, the Council's bank showing considerable public spirit at a time of severe stress and uncertainly in making the necessary advances. Had it not been ior this extra overdraft of £25,000, the ordinary services of the city would have had to be seriously curtailed, and much unemployment and distress Would have followed inevitably The policy succeeded admirably, and the difficulties disappeared with the return of confidence and the influx of rales in the ensuing months. Throughout a trying period the officers of the Corporation loyally seconded the efforts of the City Council, and, without detracting from the efficiency of the municipal services, sue- j ceeded in keeping expenditure well within the estimates. We are glad to note the Council's intention to proceed immediately with the more urgent woiks mentioned by the Mayor at tho conclusion of the interview. " Business as usual" is a good motto for all who cannot serve in the forefront of the gigantic struggle now in progress ; above all, it is the right motto for those who control great municipal enterprises. For fhese reasons we think the Mayor and Council deserve the congratulations of citizens on their management of civic affairs during a time of strain and anxiety.

A member of the Palmerston North branch of the Farmers' Union expressed an opinion on Saturday that "Sew Zealand Farmers would not be induced to grow mote wheat than they weie doing under ordinary circumstances until at least, 10s a bushel could be becured. It cost a farmer nearly treble as much to crop wheat as it did to milk cows. Another member mentioned that when reckoning up the productive cost of wheat farmeis generally I'oigot to allow for the noiu Khment that whent took out of the giound. ll had heeir estimated that a crop of wheat took out- of land tho vulue of about 32b to 35a per acre.