THE WHANGAREI LOAN.

New Zealand Herald, 29 June 1914, Page 6

THE WHANGAREI LOAN.

As Leader of the Opposition Sir Joseph Ward has a roving commission* The grievances of 'Whangarci may be as real to him as the grievances of Awarua, But when he sets himself to expose the wickedness of tho Government ho might at least mako inquiry regarding the facts of the case, and not content himself with repeating what he was "told in Whangarei." There was no need to make a mystery of the transactions in connection with tho Whangarei Borough loan as Sir Joseph Ward did in the House of Representatives on Friday night. It is true, as Sir Joseph indicated, that some citizens of 'Whangarei believe the borough has been harshly treated by the Advances Department; it is also true that tho impartial administration of an Act | passed in good faith in tho interests of the state is being used in Whangarei, and by Sir Joseph Ward, to create a local prejudice against tho Government. What arc the facts? During tho reign of the Continuous Government the Advances Department granted a loan of £19,200 to Whangarei at 3$ per cent., plus sinking fund. On the Reform Government coming to office tho Minister for Finance, applying to his work the business capacity which had been lacking in the previous Administration, convinced Parliament that the state was losing money in the Advances Department. In the first year of the Massey Government .Parliament amended tho law and provided that in future local bodies borrowing from the Department must pay the actual cost of the loan, plus one-eighth per cent, to cover charges. Only £8000 of the Whangarei loan had at this time been advanced, and on the balance the Borough Council had to pay a slightly increased interest. A case was taken to the Supreme Court with a view to enforcing payment of the whole loan at 3$ per cent. At tho time tho Herald pointed out that, whatever its legal position, the Whangarei Borough Council had no moral claim; the Chief Justice has since decided that it has no legal redress. This is the whole ease. The Whangarei Borough Council is receiving loan money at the lowest rate at which the Government can raise it. Had the Advances Department been in the money-lending business for profit the Whangarei Borough Council would havo been entitled to the , letter of its deed or its pound of , flesh As it is the Department is standing in the position of bene- , factor to all local authorities, and ' Whangarei cannot reasonably ex- . pect it to tako the risks of a rising 1 market while it gives to local . authorities the full benefit of every . fall ia the price of money.