CITY OVERDRAFTS

Dominion, Volume 14, Issue 149, 19 March 1921, Page 8

CITY OVERDRAFTS

FIXING THE LIMITS DISCUSSION BY COUNCIL RAISING MONEY AT HOME Reference to the overdraft of the city was made at last nighffs meeting of the City Council, when Councillo? C. J. B. Norwood suggested that representations should be made to the Government to fix the limits of t|hc municipal overdrafts at ft certain standard.

The Mayor (Mr. J. P. Luke): There is a limiF—by cutting them down.

Councillor Norwood remarked that the council should see that it! obtained sufficient freedom to enable it to carry on the work of the city. The Afayor said that the limitation of overdrafts depended on i’he council’s income- He thought the principal factor in regard to the limitation of overdrafts would be the very expensive rate of interest which they would have id pay for them. Tt was to be hoped that loan money would be available in tho near future. There was no reason why they should lie pessimistic. ' When things improved they could make progress with Rhe most necessary works. In the meantime, the City Council’s finance was ample to meet the cost of urgent works. Tho council was in exactly the same position as the general Government. The Priraa Afinister had indicated that he intended to try to raise a loan in England in order that he might adjust the consolidated accounts, and the speaker thought it would be a good idea if the council asked Air. Alassey to see if he crmld obtain money at Home to help the council and other local bodies. The City Council was watching the financial position very closely. “TVe must restrain ourselves ns far as possible in connection with expenditure flint is not absolutely necessary,” oliserved Air. Luke. Councillor L. M'Kenz.ie: Cannot we get an advance against the value of the City Council’s properties in the ordinary -business way? TVe might not bo able io get it! at the present time possibly. but we might get the same protection as a private individual.

The Afayor: You can only do it by way of mortgage. The suggestion of raising money by way of mortgage on the lands of the City Council' is .mother moiter altogether. Councillor At. F. Luckie: We cannot do it without legislation.