The Wanganui Herald. [PUBLISHED DAILY.] THURSDAY, SEPTEMBER 20, 1906. THE MAYOR'S LOAN PROPOSALS

Wanganui Herald, Volume XXXX, Issue 11976, 20 September 1906, Page 4

The Wanganui Herald. [PUBLISHED DAILY.] THURSDAY, SEPTEMBER 20, 1906. THE MAYOR'S LOAN PROPOSALS

The proposal to borrow .£20,000 for certain urgently-needed street works, which was introduced by his Worship the Mayor at the Council table on Tuesday night, is worthy of very serious consideration, and though some of the Councillors evidently looked on it as premature, we arc disposed to think that the time for going into the matter is opportune. Cr Caiman's contention that it should be held over till after the tramways are completed has some force, but on the other hand it must be remembered

that the discussion of the proposals, the taking of a poll, and the raising of the money will necessarily account for a considerable space of time, while the sanctioning of a loan at the present juncture will give the Council every, chance to push the matter through to finality so as to be ready to go on with the works when the proper moment may arrive. There can be uo possible doubt of the urgency of the works as laid down by the Mayor, and while Cr Cohen's statement that the streets of Auckland are much worse than those of Wanganui de&erves to be noted, it may be qualified by the counter-asser-tion that not only are the streets of Auckland — barring, of course, Queen Street — anything but a credit to that city, buti that Auckland is the worst roaded of the four centres. Cr Liffiton, who invariably gets into a state of what is vulgarly termed "blue funk" whenever the

word "loan" is mentioned, acted as might have been expected, opposing the proposals, as he has opposed every progressive measure for years past. We cannot agree with the counter proposal put forward by Cr Cohen that a loan of £20,000 should be raised for the benefit of the upper en'l of the town. No doubt there are many badly-needed works in that district, and Cr Cohen's idea of settling the vexed question as. to whether it is unduly neglected is a laudable one, but liit> proposal woul.l seem to be bad in principle, as it appaicntly proposes to tax the ratepayers ot the whole borough for the benefit of one particular part thereof^ Cr Cohen has not yet tabled the particulars of hK scheme, but unless they provide for the upper end bciug constituted a special rating area we are afraid it has not the ghost of a chance of passing the Council, let alone the ratepayers, nor is it desirable that it should. We are fully in sympathy with Cr Williams' desire to see a rubbish destructor erected and Churton's Creek made use of as a main sewer, but in our opinion street work — not merely improvement, but permanent efficiency — is more urgentlyneeded, and while we hopo to see the matters he refers to accomplished in the not distant future, we think they can be held over for a time.

Tho Mayor's proposals appear to us to be very reasonable, and they were lucidly explained. As we have already said, the urgency of the works proposed admits of no question, and — excepting for Cr Liffiton—councillors showed evident sympathy with the Mayor's object, the principal objection being that as large loan expenditure is already authorised, it would be unwise to place another loan on the market so soon. It may be pointed out, however, that it is not proposed that the whole work of street improvement and tramway construction should proceed contemporaneously. Much of the street work must necessarily wait upon the tramway construction, and the Mayor provides that the former should be spread over five years. That being so, we see no reason against the authorising of a loan which must be to a large extent anticipatory, provided always that the borough's credit is good — which it undoubtedly is — and our finances can stand it. In regard to the latter consideration, assuming the Mayor's figures are correct, which we have no reason to doubt, the policy of carrying on works out of revenue and overdraft means that the latter will show on the bank's books at the end of the year at £3500', and if the same policy is pursued in the future the overdraft has a very good chance of adding to its stature. No one can deny that this is simply borrowing under another name, and at a higher rate of interest than would be charged for a straight-out loan. The point may be raised that an overdraft can always be reduced, but its reduction must wait largely on limitation of expenditure, or increase of rates. It may also be contended that only so much need be overdrawn as may be required, but the same course may be pursued in regard to the calling up of the loan moneys authorised, and it will be noticed that the Mayor proposes the expenditure merely of £4000 to £5000 a year for five years. In regard to the additional yearly charges necessitated by a loan spent at the rate of £4000 or £5000 a year, we can do no better than append the Mayor's remarks on the subject, which certainly seom convincing. His Worship eaid:

"As I realise that the works I propose are more or less of a wearing-out nature, I suggest that our sinking fund should be made considerably higher than usual. I estimate that the works provided for by the loan will extend over a period of five years. That means £4000 to i'sooo will be added to our indebtedness every year, with interest and sinking fund, this will mean at the outside £350 a year added each year to our expenditure. Now, for the last few years our rateable value has so increased that each year our revenue has advanced by nearly that amount. If thia increase is maintained, and I see no reason why it should not be, the yearly burden of interest and sinking fund will be provided for without any necessity for raising the rates. Besides, I calculate that the expenditure I propose will relieve the rates by a sum very much in excess of that. Indeed, I think if my proposals are carried into effect, we will -be able with our present rate not merely to carry on, but to make good our present overdraft. At the end of five years, without haying unduly burdened ourselves, we will have every street in the borough in an excellent state of repair, fit for the traffic it is designed to carry, and equipped with proper footpaths. All that would then be required would be the mere expense of maintaining them."

As was pointed out by Cr Cohen, the schedule attached to the Mayor's motion is vague and too general for acceptance off-hand, but the latter very properly provided for this detail being considered and reported on by the Works Committee and he agreed, after the discussion, with Cr Battle's amendment for reference not only of the schedule of work but of the question of the desirability or otherwies of the loan to the joint committee of Finance and Works. The full and complete schedule will thus come under the eyes of the committees, which can thoroughly consider and put into shape a scheme for the Council to discuss, and, if they think fit, to submit to the ratepayers. The objection to the matter being discussed in committee we do not think is very serious, for when the report is brought up dissenting councillors will have every opportunity of voicing their objections in open Council, to say nothing of giving the ratepayers the benefit of that long-drawn-out eloquence which some of them are so fond of indulging 1 in. In order to allay any apprehension on the point the Council might consider the question of admitting the Press to the committee discussions. We trust that the discussions, both in committee and in the Council, will be a little more amicable and a great deal more dignified than was the case in one or two instances on Tuesday night. The spectacle of some of the City Fathers "throwing off" and girding at each other, like tom-cats swearing at each other on a fence, is, to say the least, not creditable to the dignity of a body like the Borough Council, and any councillor who feels inclined to retort on a sarcastic colleague might well remember that by so doing he sinks himself to th 9

same level. For the rc6t. we trust th Mayor's scheme will have the full consideration it undoubtedly deserves, for if the works are to go on we must have either a loan or, some day, an increaae in the rates.

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