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Hokitika Guardian, 13 June 1921, Page 2

Tim raising of the rate for bank overdrafts for local authorities to 7 per cent has again directed attention to the anomalous position of the local government finance (says the “New. Zealand Herald.”). Under the principal statute borougoh councils are authorised to borrow by way of overdraft the equivalent of their whole revenue under genera! and separate accounts, at not more than 6 per cent. That provision was modified by a clause in the Finance Act of last March, which authorises councils to borrow at a higher rate than 6 ]>er cent, “with the consent of the Minister for Finance, and subject to such conditions as may he imposed by him.” By the decision of the associated banks. Jtliat clause lias been brought into operation, for unless the A fillister for Finance proposes to bring local authorities to a standstill, lie must give his consent and proclaim the conditions to be imposed. Ts to be hoped lie will, at the same time issue for the guidance of local autliorties a statement of the Government’s /hws lipoii the larger question of loans for cipital works. At present ther ( , 'ippo:i-s to be a maximum limit of 6 per rent, and at this rate even the chief municipalities have been unable to sell their debentures. On the other hand the Slate Advances Offices is lending money <t 45 per ecnt„ That is th c minimum into allowed by law; other wse Hie office is required to charge one-eighth per cent, more than the rate at which the moey was raised, the fraction representing the cost of administration. Considerable sums are normally at the disposal of this department from the repayments of existing loans, and from other State departments, but they are certainly not sufficient to finance all the eligible works at the minimum rate. The whole position should he fully explained by the Minister. Local authorities are entitled to know generally how far the State Advances Office can assist them from its own resources; whether the Government proposes to supplement the funds of the department by a loan; and on what terms and for what purposes it will allow local authorities to raise their own loans.

The enforced closing of the Overseas Club rooms robs the Returned-Soldier-of a meeting place and recreation rooms. During the war period and immediate!*" after, the folk were bent on doing all they could for the men, and many patriotic promises and professions were made on the public platform. It remained for the Overseas Club, however to organise the farewell meetings and subsequently to organise the reunion gatherings under which the men were welcomed home. The Club further provided accommodation for the soldiet < in the largest room of the building, which was set aside for the soldiers furnished with comfort, and equipped with lmoks, piano etc. for recreation purposes. This was all quite as it should be but the time has come when the Overseas Club has been called upon to vacate the premises which were so much a centre for war workers since 1916 when the Club was established there to operate for the benefit of die men on service. Saturday night witnessed the enforced closing tof the rooms and as no other premises are available the Club will cease its practical work which it has carried on so unselfishly for upwards of five years. The management and particularly the ladies, who have been so devoted to the self-imposed task deserve the thanks of the community for tlieir consistent service. Certainly the men themselves are very grateful and no doubt that is the thanks the workers will appreciate most of all. The returned men are sti'l anxious for a place of rendezvous and it is for the* public to assist in this matter The help was often spoken of in the past; it has'been given in other centres and we are persuaded Hokitika is not the least patriotic centre in the Dominijom. Ready co-operative help should lie forthcoming, and if the local Soldiers Association bring forward a definite scheme and make a definite pro. posal to the people at a public meeting \ve feel that the response will noFlje

disappointing. As was said at the opencning of the Overseas Chib in 1916, the soldiers are our creditors. We have a debt to discharge which money will never repay. The men deserve our practical help and sympathy for all time, and along legitimate lines to do less is to go hack on all promises given to the men when they went to fight for us.