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Press, Volume LX, Issue 11482, 15 January 1903, Page 4

One of the motfc dequieUag economic features of the present day is tthe growth of public debt ail over the world. It m not <mly tba State debts which are ioaraamog, bob Uμ municipal debts as -well Am a mattor of fact, flje national debt in England, prior to the Boer War, -was eteadily daniniahiaig, bofe the mamclpal <iebt was growing a3 tie time. Between 1874 aad 1899 the national debt was dnrriniehed by £137,000,000, but tie nnmicipal debt trae increased by £183,000,000, and, according to » writer ia "Ebe Erne," it. bow staad*

at the huge total at mr £300,000,000. The wont of it is that the debt is in many oases out of all proportion to the rateable value Ifhich constitutes the chief item in the available sssete of tihe community. Sir Alexander Henderson, MP., bum shown that while the total increase in the cateabLe value of the country m the last twenty-five yearns baa been less than 30 per cent., Uβ local debt has trebled. Partly in consequence of this increase of debt, and paMy in consequence of general extravagance in expenditure, til* local rates have gone up m an appalling degree. Between 1869 and 1889 tibe taxation for the purposes of local expenditure in England and Wales has gone up from £17,000,000 to £38,000,000. It may be said thai we in New Zealand are not concerned with the woes of the local ratepayer in England- We may, however, make use of hie example fox our warning and guidance. Moreover, there ie the same tendency to increase municipal indebtedness going on in New Zealand, Where it is also assuming alarming proportions. Following are tibe amounts of the municipal debts of tfee four principal cities brought up to date as nearly as we are able to get them: — Auckland ... ... £554,900 Wellington 1,156,074 Chrietchurch ... 136,140 Dunedin ... .- 687,725 £2,534,839 This municipal indebtedness of over two and a half millions sterling is borne by a population not much exceeding 120,000. Wellington, which had a population of 43,638 at the last census, has thus a municipal debt of about £26 a head to be added to the indebtedness of about £67 per head for the ootooial debt. Christchurch, it will be said, occupies -a very creditable position as compared with the other cities. That is so at the present time, the municipal indebtedness amounting to only a little over £7 11s per head. It must be borne in mind, however, bhat this city is liable for a prettty considerable share of the Drainage Board's loan, amounting to about £230,000, and that it is contemplating very large additional borrowing at the present time. For tihe Woimakariri scheme and tihe tramway scheme together Parliament has given borrowing powers, subject to the ratepayers' sanction, amounting to no less than £600,000. This would mean, roughly speaking, about £10 per head of tihe population in the tramway dirtridte, and would be equivalent to the General Government applying for an immediate loan of some eight millions sterling. lit is easy to imagine the outcry thaft woeld be caused 'were a colonial loan of the amount just mentioned to be proposed. It will be plain, we think, on reflection, that municipal borrowing in New Zealand has reached a point at wihdoh it needs to be carefully watched. This is one reason why it is essential that capable bunness men should be elected on the Tramway Board—men who can be taueted not *o rush into debt rashly, and who will see the* tbe ratepayers get good be committed.