NEW PLYMOUTH HARBOUR LOAN.

Taranaki Herald, Volume XXXIX, Issue 8791, 29 May 1890, Page 2

NEW PLYMOUTH HARBOUR LOAN.

OPINION OF THE PRESS, &C. As the Hon. Mr Fergus' remarks on local borrowing have been freely commented on by the press, we give what he said on the subject. He said "he held that a debt which to his mind was just as much a colonial debt as that of the 37 millions owing to the British lender, was the considerable quantity of local debt. Local bodies in the colony had borrowed five millions, for which they paid sums varying from 4to 7 per cent. The average rate was £5 9s 6d, and the total annual payment £272,520. He had always thought it a great pity that the local bodies were taxed so heavily for the accommodation received, which was required for tbe necessary works ; and the late Mr W. Westgarth, when in the colonies, had pointed out that by the consolidating of the local government loans a saving of 1, 2, or 3 per cent, might be made upon the present rates. Supposing they consolidated these loans at 4 per cent., a saving would be effected of £73,450. In addition to these, there were loans of £332,715, being money borrowed from four Government Departments. He did not advocate that increased facilities should be allowed the local bodies to borrow, but he maintained that it would be the height of folly to allow the local institutions within the colony to be bled at the rate of one, two, or three per cent more than they would have to pay if the loans were put on a more satisfactory footing, and it was the duty of the Government to see if something could be done by which, in future borrowing, loans should be issued with such restrictions that the local bodies could obtain accommodation on more reasonable terms than at present."

The Wellington Post saya :— " It will be remembered that last year the Premier had to assist the New Plymouth Board to meet its interest, and that default was very narrowly escaped. Parliament condoned the action of the Premier on that occasion, although evidently disapproving of it, and we do not suppose that Ministers would venture on a repetition of the proceeding. Another payment of interest on the Board's debt is coming due, and we think it probable that the present panic at Home is caused by well-grounded fears that thig interest will not be paid in regular course. It is quite possible that the Board may have ißsued notice to that effect to its creditors, aa it was about to do last year. If it has done so the fall in the price of stock ia easily accounted for, and it is not surprising that the debentures of other Harbour Boards of doubtful solvency have also suffered. No doubt when Parliament meets, the true facts will be elictied."

The Howcra Star says: — " There will, of course, be much opposition to the proposal suggested by Mr Furgus. Already the Wellington Post is spelling ruin out of it. That the relief of the taxpayer should mean ruin to the colony is passing strange, and it will require something better than mere assertion to show tbat the proposal is unsound. It is all very well to say certain localities have made their bed and must lie on it. That is the narrow, petty view which the Wellington Post too often takes of public questions. The true doctrine is that the colony is responsible for the act 3of Parliament. If Parliament neglected its duty in passing laws assenting to unsound or needlessly expensive borrowing, why should the localities alone suffer ? or, if the position of affairs has so altered that by the aid of the colony relief can be obtained from local burdens, why should that relief not be afforded ? Of what advantage to the whole colony can it be that certain parts should continue to pay the foreign creditor an unnecessary amount of interest yearly ? The question has to be faced, and must be fairly argued out." The Dunedin Herald says — " If the Assembly were to permit the colony to give any sort of assistance to the New Plymouth Board, direotly or indirectly, such action would inevitably entail further loans. Against such surreptitious borrowing we earnestly protest. If money is to be got, let it be borrowed openly and above board and for objects of a reasonable kind, which may prove fairly remunerative. It would be cheaper in the long run to throw into the Pacific tbe whole sum required by the New Plymouth Harbour Board than to encourage a whole host of other such miserable corporations to pester the colony for alms."

The Oamaru Times says: — "The question is, How are these particular cases - nay, the whole question of local indebtedness, in fact — to be dealt with ? To let things drift as they are now doing will be bad for the country, but worse for the bondholders. It seems, therefore, that the case is one in which compromise should play a large part. The only way out of the difficulty would seem to be to convert the present bonds into new ones bearing a considerably lower rate of interest, and for the Government, in carrying out the transaction, to take the place of the looai bodies, whose works would thenceforth have to be dealt with as belonging to the general public works of the colony — as in the case of the West Coast harbours, for example. There are no doubt objections to this; but, then, what is to be done ? The question is one which must be answered, if it is to be answered at all, by the country's longheaded men — by its statesmen, in fact. The matter is one of urgency: how long shall we have to wait for a reply ?"

The Gisborne Herall says :-" The Post says that there is fear that the whole liability would ultimately be shunted upon the colony. That is a matter which would entirely reßt with Parliament. The Legislature is surely strong enough to insist on a small district like Taranaki meeting its obligations. If the colony came to the assistance of the New Plymouth Board in the manner suggested, the district would be guilty of dishonesty and ingratitude if it attempted to shirk the liability. Unlike the East Coast, the West Coast has received a fair t-hare of Public Works expenditure. If the Government took over the full responsibility for the Gisborne harbor loan, the colony would still be indebted to the district. However, nobody cherishes the hope that such a thing will come to pass. Neither the credit of the colony nor the Treasury will suffer in the smallest decree by placing the Gisborne Harbor Board in a position to discharge its obligations. Default can only take place through the prejudice and folly of the Legislature and a lamentable ignorance of local oircumetanooi."

CrpKtot Sw&4 Mbs ftwtar ji pujfo,