DISCUSSION ON OVERDRAFTS.

Timaru Herald, Volume XC, Issue 13270, 26 April 1907, Page 7

DISCUSSION ON OVERDRAFTS.

In the'course of a short discussion on tha finances 'of at the County Council meeting. Mi'A. Walker said he was pleased to see that'the'overdraft had been reduced.* He would like to see it wiped out altogether and the Council run without one... '1 heir/overdraft meant making a present to the bank of an average of £240 a year. •'•■ *; Air R. H. Rhodes did not) agrea with Mr Walker that. tha Council should do without an overdraft, as. to do that it would be necessary to. take money from the ratepayers 'before it was wanted, and they might have seven or eight thousand pounds of the ratepayers' money lying idje in the Bank. 'lhe Council's practice was the correct one—to borrow from the bank till they saw how much they wanted from the ratepayers, and then go' to-them for it and pay back the. bank. They must either have an overdraft, or ™llect rates before they ne-<fed them, and keep the money for some time lying idle. They did not make the bank a present of anything, but paid it for the" use of an article—money. He would' not like such remarks as Air Walker!s to pass unchallenged, or the public might think all their councillors agreed with him. Mr Lyall agreed with Mr Rhodes, for two reasons. Being in de,bt made them more careful; it was better to. pay fnterest and leave money with the ratepayers. He must ba a poor farmer who could not make 5 per cent v off his money. Mr Walket laughed at thesn argrments. He was surprised to hear such things from business men, and was • sure : they did not apply such methods in their own business. t ••' Mr Lyall assured him that they often did so.