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New Zealand Herald, Volume XXV, Issue 9142, 25 August 1888, Page 4

The recent discussions as to the position in which several of our Harbour Boards stand, must lead to the consideration of the fact that a considerable amount belonging to trust funds in the possession of the Government is invested in securities in the colony. As a rule it is advisable to invest such monies in the colony, because if the funds accumulated in the Post-Office Savings Bank by the Commissioners of the Public Debts Sinking Fund, or by the Public Trust Department, were sent out of the colony for investment, it wouh amount to a transference of capital which ought by rights to be retained here if possible. But the dangers must not be lost sight of. Sir Julius Wei was fond of gathering in money in the hands of the Government, which a "am he had the pleasure of manipulating or of lending out under various Acts of the Legislature. It is to be feared that the possession of these monies was a means of political corruption all round. Acts werfe passed enabling funds to be collected by the Government by gentlemen who were interested in localities which were prepared to absorb these monies. There is a great danger in a continuation or extension of this practice, and it is to be hoped that next session the Assembly will erect some safeguards, so that the Ministry of the '■ day shall not have as much control as it | has at present of these funds. A rej turn has been laid on the table of the I House of Representatives showing the securities in which the several trust funds of the colony are invested, as on 30th September, 1887. It shows that there is an amount of £5,242,836 3s belonging to , the colony invested in various ways. Very large amounts are, in our own Government bonds, and there are also considerable sums in the bonds of various Boroughs, Harbour Boards, etc. Twenty-one boroughs have borrowed public funds, the most deeply indebted being Oamaru, which has £14,300 from the Savings Bank. Eight of these Boroughs are in the North Island: Feilding, Hamilton, Hawera, Marton, Parnell, Patea, Thames, and Whanganui. The Boroughs have mostly borrowed from the Government Insurance Department, while the Harbour Boards have chiefly favoured the Savings Bank. In the Waitara Harbour is invested the sum of £15,650 borrowed from the Commissioners of Sinking Funds. There will be much less of such lending in future. The London market will not give so ready an ear to our proposals as it has done, and our own authorities will be less ready to accommodate borrowing Boroughs and Harbour Boards.