LOANS TO LOCAL BODIES.

Opunake Times, Volume II, Issue 85, 26 April 1895, Page 2

LOANS TO LOCAL BODIES.

Tite Government has made a departure in the matter of granting loans under the Government Loans to Local Bodies Act which will be a great blow to many districts. Heretofore it has lent money for the purpose of re-metal-ling worn out roads, but recently a circular was issued notifying that this must cease, and now before a loan will be granted a declaration has to be made that, the road upon which loan money is proposed to be spent has not been pre\iously metalled. If settlement is tc progress roads are a necessity, and i; is fully proved in this part of of the colony, at any rate, that the present ra.iDg is totally inadequate to provide fo." either making new roads, as expeditiously as - the demands of settlement require, or remaking roads when worn out. Government assistance by means of subsidies has been gradually lessened until it has almost reached the vanishing point, with the result that from one end to the other of the North Island roads have got into a sad state of disrepair, and nearly all the loc il bodies are on the verge of bankruptcy. During the time in which money was being raised'on the London market reasonable subsidies were granted to local bodies, and if settlers are not to be driven off the land by means of bad roads a recurrence to the London market will be required. The Government, without question and without reliable information, coull see its way to go on the London market for two millions of money to assist the shareholders of the Bank of New Zealand, but what greater claim had these shareholders on the colony than the struggling settlers, who are slaving from year's end to year's end producing our staple articles for export and producing national wealth. The farming community arc sadly lacking in combination, If they would only club together they could return a sufficient number of members to secure the balance of power and thereby rule the colony, and then they would be able to obtain a fair out of the loaf, for which they are made responsible, whilst other people take the ■ benefit. W« cannot see any more legitimate use to make of Government funds than to lend them to the settlers on the security of tbeii* landed interests by means of the Local Bodies Loans, and leave it to the discretion of the settlers themselves to what use they will apply the money. Every loan which is raised is a mortgage for that amount individually and collectively on the ratepayers within the loan area, and is only a branch of the cheap money scheme which the Government very justly pride themselves on. If the present Act prohibits money being lent to remetal roals then we hope an early opportunity will be taken next session to get it amended in this direction.