BORROWING BY LOCAL BODIES.

Wairarapa Age, Volume XXIX, Issue 8321, 29 December 1906, Page 7

BORROWING BY LOCAL BODIES.

A REMARKABLE INUREABE. r Wo have in former issues (says the New Zealand Trade Review) commented apou the maoh criticised Increase in the public in' debtedness of New Zealand, and we have shown that as regards the borrowings of the general Government the money that has to a very large extent been invested, especially in late years, in valuable assets of a reproductive character. There is, however, another class of loans, the inorease of wbioh is, in proportion, heavier than those of the general Government. We allude to the burrowings of "Local Govern ing Bodies." The rapid expansion that has occurred under this heading in recent years may be auaged by the following figures drawn from .official sonioes and which give the aggregate gross indebtedness of those hudies in the years mentioned:—• 1890 £6,307,338 1900 £7,867,542 1906 ■; £12,298,545 These figures show that while in the ten years from to 1900 the aggregate addition was £1,560,000, or £156,000 per annum in tbe six yeas from 1900 to 1906 the accretion amounts to £4,431,000, or an average of £738,500 eacd year. These looal bodies include Counties, Boroughs, Town, Koad, River, Drainage, Water Supply, Tramways and Darbour Boards. A consideration of the characters of these various bodies will BUggest the ■ multifarious olasses of works, which they may be called upon to carry out and how essential many of them ate to the progress devlopment, and well-being of the young communities of a colony. We may also assume that the bodies in question have ample assets to set against their indebtednesses. At the same time, it must be confessed that the pace is rather ihpid, and to looal observers the easy cheerfulness with whiob the constituencies appealed to almost invariably vote in favour of any loan, large or small, for 5 investment ia local improvements, enterprises or oonvenienoes, is a noticeable feature of the times. As long as the prosperous era lasts the resulting burden may be borne easily, and if prosperity continues the expenditure may, in the long run, be folly Justified; but it might be quite a different story should a sudden check come to the present good times, of whiob, however, we are glad to say that we see no indications at present, It may oe mentioned that there are sinking funds against, at all events,,some of these loans. The total of these accrued in 1900 amounted to £700,720, and this has increased to £995,970 at tbe latest date, an accretion of £295,250 in tbe six years.