The Globe. FRIDAY, JUNE 22, 1877.

Globe, Volume VIII, Issue 934, 22 June 1877, Page 2

The Globe. FRIDAY, JUNE 22, 1877.

Some comment has been caused by the action taken by the Finance Committee of the City Council, with reference to its banking account. Instead of following the usual custom of public bodies and inviting offers for the account, the Committee recommended that they should see whether satisfactory terms could he arranged with the Bank of New Zealand. Failing this, the other Banks Avere to be invited to tender. It need hardly he said that this latter is a very remote contingency. As has been pointed out, the Committee may make excellent terms —so far as they can see —with the Bank of New Zealand. But they are not in a position to contrast the offer with those of other Banks. By their oavii act they deprive the ratepayers of the benefit Avhich is sure to accrue from competition. The ratepayers have a right to see that their finances are used to the best advantage, and certainly it does not appear that in this instance what has been done will ensure this. By inviting offers from all the Banks as, we contend, should have been done, the Council would have been able to make the best terms possible, and select the offer giving the most accommodation. As it is now, the terms made by the Committee may be very satisfactory, but the result cannot be so favorable to the ratepayers as a" public tender. But besides this, what has been done is a departure from one of the leading principles which should guide public bodies in the carrying on of their business. In case of any large work it has ahvays been made the rule to invite tenders and give all a chance of competing for it. If the same principle be adopted in regard to works as is uoav sought to he Avith the banking account, Ave shall have lobbying in its Avorst form introduced into our municipal administration. Partisans of contractors aat.ll spring up, and the ring system of America Avill flourish in a milder form here. We are at a loss to see Avhat reason induced the Committee to recommend, and the Council to adopt, such a course. They are under no obligation to the Bank —on the contrary, for the past year or so, the city has ahvays had large balances to its credit on one or other of the accounts. Certainly it is not the most advantageous for the ratepayers, apart from introducing a bad precedent. Therefore we see no reason whatever for it being done, and it is matter for surprise that the members of the Council with one exception—should haA r e voted for the adoption of the report. That it has caused Avide-spread dissatisfaction is plainly evident, and unless the Council is so far pledged as to make retreat impossible Ave should counsel a reconsideration of the question.