LOANS TO LOCAL BODIES

Hawera & Normanby Star, Volume LXII, Issue LXII, 18 May 1912, Page 4

LOANS TO LOCAL BODIES

It has been decided (says the Dominion) by the State-Guaranteed Advances Department that in future noloans shall be granted to local bodies which have either had a loan previously or have borrowed up to £5000. The Department points out that already theamount of funds available is not sufficient to fulfil 'the requirements, and in. consequence the above course has to be adopted. The office is still refusing to lend money for the purpose of payoff debts. It points out that the local bodies in New Zealand owe £16,000,----000 apart from what they have borrowed from the Government, and if loans were granted by the Department for the purpose of discharcing those liabilitiesthe amount required would be greatly in excess of the amount that the Departments can lend annually. Further, no Joans are made for electric light, tramways, or other municipal luxuries, and in confining its loans, as far as possible, to such useful works as tracks, roads., bridges, drainage, and water supply.