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Evening Star, Issue 16778, 5 July 1918, Page 4

Tire special meeting of the City Council on Wednesday night City Finances' was more than ordiand Facilities, narily serviceable to the ratepayers. The service lay in the candid statement of the chairman of the Finance Committee as to the tiuancial position of the City, parlicn-lai-iy in respect to the approach of the day of reckoning with regard to heavy borrowings ; and it is to be hoped that the community will at last realise the abnormal forces at work, and, recognising without alarm the gravity of all the varied circumstances of a trying period, will prepare to accept in tranquil spliit such efforts at economy as may bo deemed necessary to keep the municipal activities of the City within the bounds of prudent finance. It may not be practicaole, to say nothing about prudence, to maintain without additional charges the very high standard of civic facilities which has been provided in Dunedin with an easy mind as to cost and accumulating responsibility, but which has not always been fully Appreciated. The council 'nave reached the point in their financial affairs at which caution and an adjustment of administrative policy are essential.

The chairman of the Finance Committee dir Taverner), in summarising the financial situation of the municipality. candidly emphasised its gravity, explaining in lucid terms that in about four years’ time it will be necessary to renew by redemption loan, probably at a higher rate of interest, a number of City and sub arban loans ’aggregating £520,C00. He counselled the authorities as to the necessity for looking at the situation with sobriety and care, without pessimism, bat equally without undue optimism. This counsel is as necessary to the ratepayers as it is to the local administration. The council must obtain the good-will and co-operation of the community in the matter of agreeing to an adjustment of activities, interests, and facilities to the strength of the municipal treasury. In simple words, the community must accent tear conditions without complaint, and resolve to ca" canny” with efleciua! determination. The total interest c\ ugp-, i { the City, including that in drainage loans, are approximately £97,000 per annum, with an immediate prospect of a mtwnntial increase rather than an appreciable decrease. It may be very difficult to renew heavy redemption loans in 1322 even at 5j per cent. The authorities should base their new policy upon the assumption that the cost of money will bo very much higher after the war than during the war period. Enormous sums of money will certainly be required for the reconstruction of the numerous countries so wantonly devastated by war, and it may prove that the countries I *sJ£h experienced taro good fortune during the

war in respect to tho escape from devastation will be compelled to practise selfreliance until letis fortunate communities have regained something like tbeir normal strength. One hopes, of course, for tho best ; bub it is surely true optimism to prepare for the worst. It is obvious that tire City Council must soon consider the question of increasing tire rates, and in several instances increasing the charges lor municipal facilities. Cr Taverner explained, it should be noted, that tho total expenditure had exceeded the, total revenue by £h,283. All things considered, the council need not hesitate to impose a further increase of |d on tho rates at no distant date. The ratepayers will readily agree to .pay a little mors rather than accept a substantial reduction in facilities and concessions. It would-be easier in norma! circumstances to ml rice the rates than it would be to restore lost concessions. In view of the position disclosed with regard to the gas department and its war experiences in respect to increased expenditure, it is diilicult to oppose the suggestion that the price of gas should be raised to consumers. The department bad to spend £9,.500 more for coal and received £6,000 less revenue for gas during tho past financial year than it did ten years ago. Circumstances and movements threaten another seriobs increase in the price' of coal. The miners are scaring the politicians into forcing tin* mine-owners’ hands. The council must face the position, and take action, even if it be disagreeable, to keep the gas department from failing into serious arrears.

Then there is the question of maintain' ing a- Sunday service of trams. This set vice has, it is stared, always been run at u loss. It is no outstanding credit to the authorities that this loss has been Dome lor so long- The remedy is as simple as it- is reason able- It is not to abolisn the service altogether, and thus plunge the Guv into the Sabbath-day misery of a bygone age. Let tiro City to the very last stage of its resources avoid the “ gloom of goodness,” and remain rational. The better way io overcome the loss incurred by maintaining a tramway service on Sunday is to abolish without hesitation all concessions, mid charge, full fares at tlu> le- si- I,;! that day. • If this fails to be profUab'e. the fares should be increased acco-rtandv. as lias been successfully done in the other centres, where the public may secure tramway facilities even on Sunday forenoons if they are prepared to pay for them. Those who desire to travel in trams on Sundays will not hcsiraic to pay for the privilege.