The Waipawa Mail WEDNESDAY, NOV. 12, 1924. CURRENT TOPICS. THE COUNTY LOAN.

Waipawa Mail, Volume XLVI, Issue 25, 12 November 1924, Page 2

The Waipawa Mail WEDNESDAY, NOV. 12, 1924. CURRENT TOPICS. THE COUNTY LOAN.

At Monday’s meeting of the Waipawa County Council it was resolved to take the necessary steps to secure the approval of the ratepayers to the raising of a loan of £"45,000 for bridges, plant, and main highways. The large bulk of the money is required for the last named purpose, expenditure in connection with which is subsidised by the Main Highways Board to the extent of 50 per cent. To a large number of ratepayers, especially in the back country, this is not likely to appeal very strongly. It will probably be difficult to convince them that they are going to receive much benefit from such expenditure. But it will be a pity if the parochial feeling checks what is essentially a progressive movement. The first cost of laying down roads in permanent material is practically the only cost, and a tremendous amount of money will be saved in upkeep. It would probably be found, for instance, that the amount spent on maintenance on the WaipawaWaipukurau road during the past two years out ot rates would be more than sufficient to pay the interest on loan money necessary to construct a permanent highway, and yet we still have a road which is not by any manner of means the best in the district. RATE v. LOAN. There is another aspect of the question which is worthy of serious consideration by the ratepayers. If the loan proposal is not carried it is probable that the most urgent works in connection with the highways scheme will be carried out from the general fund of the County, which means that the ratepayers of the present generation are shouldering the whole of a burden a very large portion of which ought to be borne by the generations to follow. If the loan is carried it is not necessary that the whole of the amount should be raised at once. It can be raised as it is required, and therefore the

whole of the interest will not become a charge on the immediate future. So far as the other portions of the loan are concerned bridges and plant—these are essential to the proper carrying out of the work of the County. Bridges are. necessary for development and improved plant means lower cost of maintenance. GOVERNMENT LOANS. In view of the great demand for money, it is suggested by Mr L. Deans Ritchie, president of the Otago Real Estate Institute, that the Government should exercise discrimination in granting loans. At present there is a measure of prefer ence in the income limitation fixed for applicants for workers’ housing loans. Persons with larger incomes may obtain advances only under the the settlers’ scheme, which demands a greater margin of security. Undoubtedly it would be advisable il preference could be given to people with large families and small incomes. Probably this is done to some extent when it is seen that the applicant is in urgent need of Got - ernment assistance. To extend the preference method further might involve inquiries which would be some trouble to make and which some applicants would resent; but if it is possible to increase the usefulness of the advances by.selecting the more deserving applicants the suggestion is one worthy of consideration. Ot course, the effect of a preferential system would not be so great as may be supposed on first thoughts: foi every new house in the dwelling class, helps to ease the position, whether a poor family or a rich one occupies it.

TO CHECK SPECULATION

A second suggestion supported by Mr Ritchie is that Government loans should be repayable on sale of the property. If the law were amended to make this possible, it would certainly check speculation, but there is a danger that it w'ould also do harm to those people who, without being speculators, are forced to sell their properties because their work take.; them elsewhere or because the hous ■ becomes unsuitable for the family. At present, we understand, the Advances Department has a rough-and-ready method of checking speculation by refusing second loans to persons whose names have previously appeared on the list of Departmental mortgagors. Even this may not always meet the case, as, for example, with the young married couple who start in a four-roomed cottage and find it necessary later toseek a largei house. But if Mr Ritchie can suggest a practical scheme «f assuring that such people may be helped, and a tighter rein kept on the speculator, both in farms and houses, we have no doubt that the Finance Minister will ’ welcome the plan.