COOK COUNTY FINANCE

Gisborne Times, Volume XIX, Issue 1628, 16 December 1905, Page 3

COOK COUNTY FINANCE

SHOULD THE OVERDRAFT BE RETAINED ?

The question of wiping out tbo overdraft of something ovor nine thousand pounds odd by means of a special loan was disoussod at the meeting of tho Cook County Council yesterday a'tornooD, and finally tho mattor was loft for the opinion of tho Council's solicitor to be obtainod. The subjeot was introduced by tbo Chaiimao, who stated that tho Council ' was seriously haudioapped with its fluctuaating overdraft, averaging from £BOOO to £9OOO, for whioh they paid close on 6 per cent, interest, or about £4BO per annum. This went on year after year and did not beoome lois. If they raised £BOOO by speo’al loan, ho was not quite aertain whether thoy would have to strike

a special rate or set aside, say, one-fiftieth of tboir revenue for the paymont of tho loan. So many ether fiftieths could go to mako up tho three faitbing rato. They would thus be paying £4OO a yoar for 26 years, and then, by moans of tho sinking fund oreatod, it would bo ended. Whereas, by paying £450 on overdraft, they wore no further ahead eaoh yea”. Ho considered it good finanoe to go in for a lean suoh as be suggested. . Or Hardiug was impressed with the bnsiness-Jiko suggeslion made by tho Chairman. Ho considered that the Council would be aoting wisely to convert tboir overdraft in the mßnner suggested. _ Or H. Kenway thought the matter was an important one, and that a solicitor should be oonferrod with on the question. Or Carmichael had little hope of increasing the present overdraft. Ho thought that an improvement shou'd be made in the financos of tho Council.

Cr Macdonald suid bo had perused tbo Act, and saw no obstacle in the way of tho Council converting their overdraft in the manner suggested. Besides a saving being effected to the Council, tho latter would be in a batter position (o enter upon new work?.

Cr Wall did not see how tho Council oould dispose of one overdraft and then go in for another in tho manner suggested. The Chairman said that the amount of tho overdraft to be obtained was entirely governed by the amount of the tates for each year. Tbo Clerk doubted whether the Council could adopt tho course suggested by the Chairman. Ho thought thoy would have to go to a privalo firm.

Cr Macdonald was in favor of striking a special rato to pay the interest. Cr Lysnar opposed tho suggestion, contending that it was only opeuing tbe way for inoreased indebtedness. Tho Council would never da without an overdraft.

Cr P. T. Konway thought tho Clerk should obtain the ioforma'ion whether they could get tho loan under the Loans to Lccal Bodies Act. Tho Chairman suggested that they should allow the matter to stand over ponding the opinion of tbe solicitor whether tho overdraft would be rff-cted. Cr Harding said the requirements of the Counoil wore increasing so much that thoy would have to do something in order to improve their finance. Cr P. T. Kenway : Whether we decido to borrow or no l , it seems that tbo right course to adopt is to consult our solicitor as to our position. After furthor disoussion, it was decided to refer the matter to the Council’s solicitor.