WELLINGTON NEWS

Hokitika Guardian, 22 September 1925, Page 4

WELLINGTON NEWS

LOCAL BODIES’ LOANS. (Special to “UuardirJi”-) WELLINGTON.. September 1?. The freedom with which local bodies have been borrowing and spending money has been referred to by many public men. and it was fell that something ought to be done to cheek it. It is -also certain that many works have been undertaken prematurely, and others again have been ill-consid-ored and have proved extravagant. Ihe proposal of the Government, to have all loan proposals scrutinised hv a competent body ol experts meets with the approval of business men and ratepayers. Local bodies as a rule are. not in a position to pay for the service of skilled men. and there is good rea--1,0 for believing that many undertakings have been pushed through that are now v\ hi t-e elephan ts. Ihe co-ord illation of local bodies in respect to works aml the Public Works Departmental work- is a sten in the right direct ion.

The Government is not to move in this matter until next year, but the delay will do no harm. Local bodies may 'propose to construct many public works, but they are not likely to get beyond that because money will ho their trouble. Eiuatice is giving the Government trouble, and it. i> becoming more and more difficult to find the money required by local bodies. These are binding it very difficult to obtain loans m the open market because the rate of interest they are privileged to offer is not high enough to attract the private capitalist. A good many works ci ntomphitcd will have to stand over indefinitely. STATE ADVANCES LOAN.

The lion A. I). Alel.eod, speaking ni 11unterville. last week -aid lie agreed that it would lie a national calamity for the Government to lind all the money for the mortgages ol this inuntry. He might have gone lurther and said it was a national calamity that the Government set tip a pawn--hop. lie lurther expressed the opinion that for the Government to become a general lend t to all those seeking munev lor any and evetv purpose would again cause in fin i ion and boom. Obviously tie Government is responsible for the last boom and lor the in 11 ntion which caused it. ’I he Government is in tile pawnbroking business and cannot very well get out ol it. There would have been no great harm done had the Government carefully studied the economic aspect of the matter. That was not done. It was assumed the Government could peg down the rate of interest, and force everyone to accept the situation. Any professor of economies, any ordinary business man could have fold them that sue!i a course ol action would result in loss. The Government tied itself to lend at If per cent and now it finds that it cannot itself borrow at less j halt ;‘> per cent, and yet must lend this munev at If per cent. And the Government has not had the courage to face the position and insist, upon a higher rate of interest.. The .Minister of Kinance is to make an ellYu't to raise four or live millions in order lo clear up all arrears of applications lor housebuilding loans. Taxpayers "ill hope that the .Minister will at least no sluiced ill this venture. It is dillicul to see where tin- money is to come from. It eannoL he raised in London. > eein ; t Ini l the -even million loan Hunted in .May last was a failure. It is doubt ful whether it can he raised in Australia, and (he oulv alternative is to raise the amount in New Zealand. It i- doubt |a | whether a .T nr cent. Iran would take with the public but a

J tier < flit is - in* may be taken up to a limited extent. But whatever Hie rate of interest the taxpayers should in-i>t that, the motiev i- not adenine! to housebuilders at a lower title ; il it-

is. then it is obvious that the great body of taxpayers must find the difference. It would be better not In encourage tin' Government to indulge in

sue!) " high linanee.” LONDON WOOL SALES. The London wool sales now current will prove n great disappointment to many growers, and pall icula rly to those who shinped their wool Home t ■ (nleli the September sale. There is scarcely a grade of wool which shows titty imp!nvement in value; mi the contrary, there tire some classes ol the staple that are weaker. The main support of the market is derived from Eratt'e and Germany, and this was the experience of the duly sales. The Continental demand is necessarily restricted because of the difficulties of finance. As soon as Continental requirements are met the market will ease. Without the support of Yorkshire and the I'niteiT States, and particularly the former, the market, will not show any real buoyancy. Yorkshire i- operating with caution and is merely interested i.t forcing the Continent to pay lull rates. The Cnited States continue in the twilight zone, and yet the Americans must he in need ot wool.

oumikeis who are niggardly ol their ’baccy are rare. As a rule their pouch is at the service of almost anybody. Of course there are except ions. Do yon remember the story of the smoker who kepi two pouches ! One he called "the world.” the other "providence." The first was always empty; the second always well Idled. If asked for a lill lie would regret that lie "hadn't a hit in the world." If questioned as to what he was going to do for himself lie would say "oil I must trust in I ’rovidettce". Well, there tire all hinds of smokers, iusl as there arc all kinds of tobacco. By the way, have von tried our own N. Z. grown tobaccos 7 In some respects they are unique. Eor one thing they are all toasted. Iloiuv their peculiarly delightful liavotlf; secomlh they contain so little nicotine that they may be smoked "till-llie cows come Imine" without proving injurious. Thai’s why the doctors approve of them. Try Rivcrhcad Gold mild. Navy Cut (Bulldog) medium, or Cm Plug No. In t Bull’s Headi itill.