Taranaki’s Millstone.

Gisborne Standard and Cook County Gazette, Volume II, Issue 211, 20 October 1888, Page 3

Taranaki’s Millstone.

A further development in regard to the financial position of the New Plymouth Harbor Board has taken place. The Board, it seems, has, through the Bank of New Zealand, applied to its London creditors for time. The exact nature of the proposal has not transpired. The Board decided privately to forward the letter in question, and the fact only transpired when the Chairman, a few days ago moved—“ That the Chairman’s letter to the bondholders, of Bth September, forwarded to London by the Bank of New Zealand be withdrawn by cablegram and carefully suppressed.” This proposal was supported by a letter from Mr Samuel, M.H R., who was absent through illness. The motion was discussed in committee and negatived, but there seems room tc believe that, as the News puts it, “ the letter was sent asking the bondholders to come to terms by making for the present a reduction in the interest on the loan, on the ground that the Harbor Board could not possibly pay the full amount. We presume it was not intended that the bondholders should forego the amount reduced altogether, but only for a time, until the revenue of the Board increased So as to enable it to pay more, A Wellington oontempory remarks : —The effect of such a request, following the recent Bank of New Zealand affair, will undoubtedly be injurious to the colony, and temporarily injure it credit, but I it is better that this should bo so than that the colony shou’d, by coming to the Board’s assistance, acknowledge any liability on its part for such debts. If they could be saddled in the colony, its credit would be seriously and permanently affected. Whether the English bondholders will agree to do what is asked, is, we think, exceedingly doubtful. They will probably, prefer applying for the appointment of a Receiver, to miking any compromise with the Board and leaving the administration in the hands of those who have got affairs into such a mess.