THE SATURDAY, JULY 10, 1869.

Grey River Argus, Volume VIII, Issue 543, 10 July 1869, Page 2

THE SATURDAY, JULY 10, 1869.

Thb Borough Council has at last made up its mind quietly to accept its inevitable fate, and with as good a grace as possible take over the liabilities which were incurred by the late Grey Road Board for the protection of the town against floods. Although this event has been delayed as long as possible, it was always admitted by the members of the Council that they were morally bound to accept the liability sooner or later, but they looked forward to the time when they would be in funds aud able to liquidate it when they did take it over. The County Chairman has throughout these negotiations acted in an honorable and conciliatory manner. He has given the Council every opportunity of arranging the matter in theii own way, although he had the power, under his delegation from the Governor, to strike a balance between the Road Beard and Borough Council, and assign to eich their share of the liabilities, in any way he thought proper. But he did not exercise this power, and his letters and telegrams on the subject were treated with but scant courtesy by the Council. At last the members were convinced that human, patience had a limit (it is wonderful the amount of patence which has been exhibited by the creditors whe represent the L 1629 just taken over by the Council), and on Thursday night they formally accepted the liability. The County Chairman will shortly ratify tie arrangement, and then the duty of the Councillors will be to devise the ways anl means of liquidating their engagements It is no wonder that the Councillors hesitated so long to take the step which would saddle upon them such a large additional amount of debt, at a time when they were unable to meet their own legitimate liabilities— the debts they had incurred since they took office. With an overdraft at the Bank of nearly L 14.00, and many other contingent liabilities, with the public works stopped, the labor-sheet unpaid, their paper at a discount, and the hcp.'S which were raised of having the proposed loan negotiated in Christchurch suddenly blasted — no wonder that the Councillors hesitated to admit their indebtedness for an additional L 1629. However, it had to be done, and the Council has now resolved to look its position fairly in the face, and as there has been a good deal of idle talk lately about that body being insolvent, itmaybe as well to enquire what that position really is. The Council is in debt on account of overdraft and outstanding accounts, say, LI7OO ; Road Board debt, Ll629— in all L 3328. To meet this its assets may be roughly stated as follows : — Due from the County Council, voted last session, L 750 ; due on account of land sales, say, L 10 0; wharfage and tonnage dues to be collected during the year, L2OOO ; expected grant from the Native Commissioner, LIOOO ; expected special grant from the County Council to meet the Road Board debt, Ll5O0 — making in all L 5350, which may reasonably be expected during the course of the year. This shews the Council to be solvent to the extent of L2OOO, and that without taking into consideration the general rate for 1869, which, when collected, will give another LI6OO ; as well as the fees from the various licenses which are to be issued shortly. The finishing of the protective works and the formation of some of the streets are provided for by the loan of LSOOO, the repayment of which is secured by a special rate of Is in the pound on all rateable property within the Borough for seven years. If these figures are carefully considered it will be seen that tfie Council is not only solvent, but likely soon to be in a first-rate position financially. But, in the meantime, as all income must go into the Batik and nothing come out until the overdraft is materially reduced, the Council finds itself in an embarrassed position, and unable to meet pressing engagements. When the L 750 now due, and daily expected from the County Chairman, arrives, it is probable that it will also be impounded by the Bank ; but we trust that it will be made available for present requirements. The public works are stopped, and there is no expenditure beyond salaries, so that all that is required is time to relieve the Council from its temporary difficulties. With regard to two of the assets we have put down, it is easy to show that they are reasonable "expectations." Some months ago the Native Commissioner recommended the General Government to pay out of the trust funds a subsidy of LSOO for the protection of the Native Reserve, anrl the Council agreed to accept this as an instalment of what they reasonably believe is due to them. The Council had absorbed the whole of the last year's rates, grants from the Government, subscriptions from Protective Works Committees., and money from every other source they could imagine in protecting the Maori land, while the owners of the land have only slightly • assisted them. LIOOO ought to bo the

smallest subsidy now sought for from Mr Mackuy, and a Committee has been appointed to wait upon him on the subject on his arrival, which is expected in a few days, With regard to the anticipated grant from the County Council of LISOO to reimburse the Borough Council for taking over the Road Board debt, there is every reason to believe that it will be granted, because the amount was spent on public works for the protection of the port, which ought to be a charge upon the County at large, The protective works in Hokitika were undertaken solely at the expense of the County, and there is no reason why Greymouth should not be treated in a similar manner. This will no doubt be well looked after by Mr Lahman at the approaching meeting of the County Council, and we aro glad to know that Mr Hoos has expressed himself as being favorably inclined to the application. On the whole, the present financial position of the Borough Council is not discouraging — its difficulties amount merely to a temporary embarrassment, which a little time and patience will relieve.