LOCAL BODY CONTROL

New Zealand Herald, Volume LXIX, Issue 21315, 17 October 1932, Page 12

LOCAL BODY CONTROL

Sir,—-Mr.' James Fiefcher in his address to the CrSditmen's Club is reported to have suggested that a commission should collect from local bodies the sums due in respect of loans and pay the bondholders the interest due. Why this roundabout and costly procedure;, when as far as is known not more than two small local bodies in the Dominion have defaulted in interest payments. This, in my opinion, is a splendid record and is a mutter for gratification. Mr. Fletcher further suggests that in the event of any default by weaker local bodies it should be within the power of the commission to make a genera! levy to pay the interest due to bond-holders in of the authority in default. Such a proposal appears absurd in the extreme. Why not carry the suggestion to its logical conclusion and deal similarly with defaulting businesses, mortgagors and all other classes of debtors 1 It appears to be the popular pastimo in these days of depression to blame a good deal of our financial difficulties on the local bodies, but, admitting that there is room for improvement, the general administration of local bodies in the Dominion is of a high standard and compares more than favourably with that of business generally, where there is plenty of evidence of overlapping and duplication. Executives and commercial travellers cross and recross ,each others tracks like milkmen in a suburban street. Boeough.