The Wanganui Chronicle. PATEA-RANGITIKEI ADVERTISER. "NULLA DIES SINE LINEA." TUESDAY, APRIL 3, 1894.

Wanganui Chronicle, Volume XXXVIII, Issue 11953, 3 April 1894, Page 2

The Wanganui Chronicle. PATEA-RANGITIKEI ADVERTISER. "NULLA DIES SINE LINEA." TUESDAY, APRIL 3, 1894.

A "ruzziiED" correspondent wants some information ''about that Loan." We have written on the question on several different occasions, but it may be that it is onlj now that a poll is to be taken as to whether the moaey Bhall be borrowed, that tho ratepayers are developing a live interest in the matter, So long as the question was one with which the Council as a body alone had to deal, the ratepayers may have felt only a languid interest in it. But now that they themselves have to say "yes" or "no" to the loan proposals, it is natural that they should wish to know what they mean and what they involve. We are glad to find so much interest exhibited, and we would ' like to impiefs upon the ratepayers the fact that the whole responsibility rests upon their shoulders. The Council has no power at all, save to expend the money if the ratepayers allow them to borrow it. Every ratepayer who stays at home on Saturday next, or who refuses or omits to go to the poll, will be counted as voting againft tfco loan— in other words, as voting that there shall be no fresh and " improvnd " water supply ; no extension of the drainage system; no formation of new streets and footpaths ; and no re-formation and gravelling of old ones ; and no public swimming foth for young and old. We gather from tho tone of '• Pnzzled's " letter that he is in no way opposed to the practical benefits which the loan must confer upon thu town. What " puzzles "' him, and what he apparently would like to be clear about before voting, is how tho extra money is to be got for voting, or, in othor words, how we can expect to get £12,000 more money and pay no more for it ; nnd further, why, if there will ba no more interest to pay, the special rate to provide tho interest money has been doubled. The questions are perfectly legitimate ones, and obviously require explanation— or would do so if they had not 1 eon answered several times already. First then, let us say that the preEent loan of £43,000 was borrowed, Ihe greater p*rt of it twenty years ago, and portions at Inter periods— tbo whole bearing G and 7 per cent, intereel. The total amount of interest which tho borough haß'to find on tho £43,000 is £2680 annually. The new loon of £55,000—including £12,000 for borough purposes — will Hoar 5 per cent, interest, and no difli'iulfy at all i 3 expected to be oncountorod in floating it at par. 'J ho position, then, is this : for tho present loan of £43.000, bearing G and 7 per cent, interest, wo have to pay every yoar for interest £2080. For the new loan of £55,000, at 5 per cent, we will have to pay £2750— just £70 a year more than we pay now. Bo far, surely, very satisfactory. But, says our correspondent, if there will really be no more interest to pay why does the Council want lo put on a special 2s rate, seeing that the present spesial rate ia only la. Clearly this point also wants explanation. And tho explanation is, that tho Is special rate doos not piovido the present interest money. The holders of the present loan have a three-fold security, embracing tho (special rate, the water rate, and tho borough resurvuij, and all those sourcos of

revenue contribute to the interest fund. It is proposed to do away with this complicated arrangement in raising the, new loan. Neither the water supply nor the reserves will be pledged. Tho special rate of 2s in the pound will constitute the whole and sole security that the lender will have— and as nobody would lend unless the security weie more than sufficient to provide the interest, the rale has necessarily been made greater than it will be required to impose. The amount that will be collected will be Is 8d in the pound, which will be quite sufficient to provide the full amount necessary for both interest and sinking fund. The present general rate of Is in the pound will be reduced to lOd, but the Council will lose no revenue by the reduction,' as the rents from reserves will coire into general revenue, instead of being allocated for payment of interest. We think we have made the matter clear, that the ratepayers, if they will, may have £12,000 to expend in important borough- works without an extra farthing in the way of rates for the boon offered them. Now, as to"Puzzled's"last query, as to why it should be necessary to borrow for the construction and maintenance of streets and footpaths in a level town like this. We may answer that the ordinary revenue of the borough is quite sufficient for all such purposes— but that that revenue has been called upon to provide the money for an urgent work that, had it been possible, should have been done out of loan. Ihe river bank protection work has taken a large sura of money that should have been applied to streets and footpaths, and really the money now to be borrowed for that purpose is to replace the sums devoted to tho river bank. We hope we have satisfied our correspondent. _ If, however, any lingering diubts remain in his mind, or in the mmdß of any other ratepayers, we shall be pleased if they will give us the opportunity of endeavouring to allay them. 1 T^