Correspondence.

Manawatu Standard, Volume XL, Issue 7847, 26 May 1904, Page 6

Correspondence.

Poluuigin.i County Council

Fiuauce.

(To the Editor)

Sir,—ln your report of tho last meeting of the above Council tlie goneral account was shown to bo i» credit £632 11s lOd. At. the Fqbruary meeting it was reported that the general account was overdrawn £2240. (The legal limit is £2263). The treasurer then suggested that "the Land Fund and Interest Accounts should be closed and paid into the General Account, thereby making a considerable. saving in interest on overdrafts." The total amount of " Thirds " (Land Fund) in hand on 31st March (with interest) was £2166 0s lid, which, in accordance -with the above recommendation was duly transferred to the General Account, and since then a sum of £269 more "Thirds'' has, also, been paid into the General Account, making a total of £2135, thereby extinguishing the overdraft, and placing the General Account £195 in credit out of " Thirds " alone ! The balance of the credit (£437 lls lOd) is, of course, rates. Has this transfer effected " 'a considerable saving in interest 1" And if so, at whoso expense ? For some years prior tq this transfer ihe " Thirds" (or Land Fund) were placed on fixed deposit at 3 per cent. The over draft cost 5 per cent. According to tho last published balance-sheet of tho County Fund (March 31st,. 1903), the amount received from the Bank by way of ' interest on " Thirds" was £64 15s 7d, while tho amount paid to the Bank fpr intercut on overdraft was £43 7s, 6d, a gain to the Council of £21 8s Id. The qonditrons have not altered1 much since then —the Land Fund is a little larger, and so is the overdraft, Where, then, is the gain ? To Pome it Wight appear to be folly to borrow money at 5 per cent, and lend at 3 per cent. By this transfer tho Council have now £632 lls lOd to the credit of the General Ac-. count, which does not carry interest. But strictly speaking (and the statement laid on the Council table at its last meeting shows it) the General Account is actually in debit £1802 8s 2d !. Why amalgamate accounts to distort facts ? And then we have the chairman saying "the saving." is very satisfactory," and the Council resolves, on the motion of a member of the Finance Committee, to express its appreciation of the . satisfactory position of tho finances 1

Now, sir, these " Thirds " are derived mainly from the Umutoi, Coal Creek, and Mangapikopiko .Hidings, and are practically trust monies, and cannot (or, at least, ought not to) be made use of for general purposes. At the time the loans wero raised for roading these ridings tho ratepayers expressed the wi^h through' their respective Councillors, that their "Thirds" should foe hypothecated for payment of interest on loans, and that tho amount, then accrued, and to accruo from time to time, should bo placed on fixod deposit with tho Council's Bank, only snoh portion beino- kept in hand as was necessary to pay interest as it became due. Their requost waa acceded to by resolution of tho Council, but by this transfer the request has been itynored, and the resolution rescinded without any resolution of the Council.

This transfer is, not only a loss to tho County as a whole; it is a breach of faith with those ratepayers whose sections; contribute to the Land ¥md ; and it is a gross injustice,' also !

The other four ridings of the County have no Land Fund (except two sections m TomaEi and two L Awa° Zl' $ aru heaVily overdra'vn, und they have by word Qf . Egtruc _ turn taken an interest-bearing fund from the ratepayers o f Umutoi and Coal Creek, whoso General Acoo.mts are usually hi credit, to pay the "^ tm*t on the overdraft Sf Vot£r tfveT Af i.WOn^ o, r. the wpreaettta. aw rti °S!. mdm Ss- d° look the 'Finance Committee" did not Lie tiiey dxd not intend to robtV-ir another aspect of this j£ til n winch is perhaps worse than iiie less of th« mterest by those whose, it %Jr 1 Gcneral' Fund available for general purposes all over the County The Land Fund ("thirds") a for the payment of interest on loans m some particular patt of the County. .Should we have a repitition of the winter'of 1902, when in one day £1500 worth of .lama-e was done - throughout the County, the General Account, which is now really £1802 overdrawn, would be drawn upon to repair the damage «n + i- ? »may SP ta PPcn that these thirds would go too (for the balance available by way of overdraft is only £461) and then how would the interest on the loans be paid? Only by collecting the special rates, and- lam sure the settlers m the Umutoi and other ridings who have been relying on their "thirds" for this purpose would not. relish that. I am writing chiefly to suggest to the ratepayers interested to at once move in the direction of having their " thirds " kept in a separate fund to avoid the possibility of the principal, as well as' the interest, vanishing-. I have no " thirds " and I have been waiting in the expectation of someone who has taking the matter up. I know a number of your subscribers are interested in this matter, and I hope you will consider 'it of sufficient importance to publish this letter. It is rather long, but my anxiety to see justice done to some silent sufferers is? my only reason for writing at all.—l am, etc., H. DICKIN. Raumai, May 23rd, 1904.