THE TOWN HALL.

Evening Star, Issue 4130, 23 May 1876, Page 3

THE TOWN HALL.

To the Editor —“No case, abuse the plaintiff” is evidently the text of “City Councillor,/ who is apparently as innocent of the first rudiments of arithmetic as he is of finance. Were it not that important public and private interests are involved in this matter his letter would be unworthy of notice. In support of my letter I quote the following extracts from the City article of the ‘Times,’ 18th May last“A loan issued in this way becomes thus a prodigious engine for draining a State of its resources—a means of dragging a corporation to rain. Taking into account the number of years which the borrower gets the use of the money for, the best priced and longest running loans mentioned below are obviously extravagantly dear. No borthat cared for his financial stability in the long run should lend himself to such a system.” The following are some of the examples attached to the article : 'd'2 3 <3*o 0 2®S § a q-g j . Name of loan. - §|g || £ Argentine, 6 p.c., 1871 88* 8* £6,122,400 21 Chilian, 5 „ 1873 94 7 2,276,500 20 Hungarian, 5 „ 1871 81 6* 3,000,000 S3 Uruguay, 6 „ 1871 72 8J 3,500,000 21 o • o . ©,13 O HJ • 5 feo -g.S •vr . o 2 gJS sT w cs 5 Name of Loan, £,§ -gU § | tufa 2* 31 M 1 . ~ £ £ £ Argeutme, G p.c., 1871 5,418,321 520,404 10,928.484 Chilian, 5 „ 1873 2,139,910 159,3 5 4,092 236 Hungarian, 5 ~ 1871 2,430,000 190,000 6.133 200 Uruguay, 6 „ 1871, 2,520,000 297,500 6,247)500 • “Net," that is, inclusive of commissions paid hy borrower to loan agent, &c. 1 For the test of comparison with the above, the figures are again given herewith. Ihe actual cost to the citizens will thus be about L 75,000, viz. Bill due in thirty years £25 000 Interest on tho same at 6 per cent, or * L 1,500 per annum for thiriy-threo years 45 Exchanges and potty expenses *SOO Total £75,000 To put the same thing in another form • if a person buys property for LoO and gives a bill for the same at three months and pays LI per month interest in cash also, the cost of that property must therefore be L 53, if the bill is honored at maturity. The mere fact of a portion of the last loan being now in the Bank does not alter the figures in the least, but gives a worse complexion to the whole affair The City Waterwoiks issue was offered in London last year at about L 97 10s per LIOO debentures (6 per cent, interest) j after deducting commissions and all charge?, not more than L 95 would be netted. If the Corporation is borrowmg at this rate, the actual cost of the Hall will be proportionately greater. It may, however, be safely asserted that in no prospectus of the loans yet issued has one word been said about L 25,000 being required for a Town Hall, To divert this amount to such a purpose would not be distinguishable from obtaining money under false pretences. If the Corporation were flush with cash of its own, free of debts and rates, a more sensible expenditure would be to follow the example of some foreign cities and expend the amount in the aiding and development of onr foreign trade; for it is only a vast extension of our foreign trade to counterbalance our enormous foreign indebtedness, accompanied with the most rigid economy, that can help to save us from disaster.—l am, &c.,

_ , Ratepayer, Dunedin, May 22.