BOROUGH LOANS

Timaru Herald, Volume C, Issue 15302, 23 March 1914, Page 3

BOROUGH LOANS

TOTAL OF EIGHT MILLIONS. Local bodies in New Zealand have pursued during the last 10 rears a. verv active policy m regard to expensive, undertakings, such as eCectric tramwavs* drainage and water supply, lighting abattoirs, and street widening. r J be result is that on the latest- calculation which has been made for a now edition of the Municipal Year Book about to be published the outstanding loans of boroughs amounts to £8,357,964. This huge amount involves the pavai.Mit annually of £470,705 in interest'and sinking fund. The average rate of ■;Merest is 4.46 per cent, but 10 years ago (when the indebtedness of boroiigns w;.s iess than half of to-day's totai) ihev paid nearly 5 per cent, as a. rule. Further savings of interest are anticipated as the operation of the State Guaranteed Advances Act k extended. As an indication of the way in which loan money is spent the following analysis of last year's loan expenditure, totalling £889,182, is instructive:- £ Streets', footways, and bridges 182,251 Drainage and sanitation ... 205,373 Waterworks ... - ... 169,447 Tramways 61,2-24 Abattoirs and pounds ... 16J596 Lighting and power services... 134.873 Other public works ... 103,985 Management, interest and sundries ] 0,433 It is shown that just as loans have doubled in a decade., the yearly receipts and sfiendings of the boroughs have also gone up'in the same proportion.