Wairarapa Standard Published Tri-weekly, Price 1d. FRIDAY, FEBRUARY 5, 1886. Borrowing.

Wairarapa Standard, Volume XIX, Issue 1791, 5 February 1886, Page 2

Wairarapa Standard Published Tri-weekly, Price Id. FRIDAY, FEBRUARY 5, 1886. Borrowing.

Thinking and intelligent men in this colony are becoming thoroughly alarmed at the , prospect of the present Government proposing 'to raise an additional loan of eight or ten millions. This feeling of alarm is increased because it is known that the Government desire to squander some three or four millions of this contemplated loan, in constructing the East and West Coast Railway— a work which , will certainly not prove reproductive for mauy years to come, if fudeed it should ever become so. Then it is quite certain that if the Government were allowed to get the handling of another big loan, they would squander large sums of money on other works not likely to prove reproductive ; simply for the purpose of buying political support and trying to maintain themselves in place, pay and power. It would be a terrible misfortnue for the colony that the present Ministry should be permitted to borrow largely and spend lavishly and recklessly. The taxpayers are already weighted as heavily as they can hear, and further borrowing ou a large scale would make their burdens absolutely intolerable. Mr W. C. Buchanan, the member for this district, while lately addressing his constituents, dealt very plainly with this question of further reckless borrowing and the dangers which it involved. The facts and arguments employed by Mr Buchanan were plain, practical, and telling. He contended that the action of the Ministry in the past and their failure to fulfil their promises shows clearly that they are not to be trusted ia the future. After stating that the Ministry aie now pledged to support the scheme of " The Canterbury Bailway Line,” Mr Buchanan remarks " The last trump card of Vogel is to carry out this East ai.-.l We t Coast Railway schema, and thus seive tV purpose of those Christchurch speculators. That means borrowing eight or ten millions, and having a Protective Customs Tariff—or in other words heavy taxation—to pay interest on this enormous sum of money. The Christchurch railway league, with A >'v« secretary, stands to bag nearly four millions of this, and hopes to buy the rest of the colony by throwing -down the remainder as a bait. Let us have a look at the ledger as to how wc stand at tho present moment. Our nett debt at the present time, after deducting the sinking fund, is 32 millions, involving an annual payment lor interest of L 1,650,000

(L‘275,000 mote than total customs). If we add to tho s e figures our other miscellaneous borrowings, such as loans to lioroughs, Harbor Hoards, and private mortgages of all descriptions, the total comes up to the enormous sum of 70 millions. Then there is interest on money engaged in banking, loan , companies, Ac., Ac. It all means that n-e have to pay away every year out of tlm colony somewhere about five millions of nr , ,m.)

total exports aro about 6] million!-,'’ With the * ,acts More him, Mr Buchanan emphatically prute.:* th ® ,f re “ , . U Ministry being allowed to ra.." ano,^ er loan of eight or ten millions, to spend in .. ** manner indicated. But Mr Buchanan ia not against a limited amount of borrowing to be carefully expended on reproductive works. Wo quite agree with this view of the case. There must be further borrowing, to a limited extent, so that money may be available for making roads and bridges to open up Crown Lands and thus promote the settlement of the country ; lor purchasing Native Lands, and for completing certain lines of railway which are certain to prove profitable. But in the present financial condition of the colony any attempt ou the part of the Government to raiss another enormous loan and spend the greater portion of it on such a monstrous job as the East and West Coast Bailway, would, if carried out, speedily bring the colony to the very verge of ruin.