Caution.

Manawatu Herald, 11 February 1897, Page 2

Caution.

• It is always good to see the representatives of the public energetic in good works and showing a desire to push the district ahead. Since the present Mayor has been in office our Borough Councillors appear to expect a great inarch forward, so much so that they exhibit an anxiety to purchase clay pits and gravel pits so that the funds may be saved from tithes. This on principle is correct, but a Borough has to be worked as a business concern is worked, which means that one's coat must be cut in keeping with the cloth. Every business could be improved with an increase of capital, and every local storekeeper could sell cheaper if he purchased direct from the Homo markets, to purchasing as he does. Then why don't he ? most probably the answer would be because he has not the capital, and could not afford to lay out the money. The Borough very likely would in the long run, extended over many year 3, save money by purchasing land, but can they afford to do so out of current revenue ? We hold that they cannot, and to show that it is so, quote their oft repeated answers to those who ask for roads to be metalled. The cost of a piece of land for a pit, would metal many chains of roads, and the public know too well how many chains of road need metalling. As long as the Burgesses refuse to sanction a loan for road-making, bo long must our Councillors shepherd every halfpenny, and proceed on the hand to mouth style of buying clay and metal retail. It is poor satis faotion to ratepayers who want roads at once to be told that the rates paid for roads have been spent in pit 0 , so that their roada can be nude cheaper in the sweet by and-by. We admit with the proposers, that in the long run, a purchase of both metal and clay pits would be cheaper, bu; we are as well sure that as such outlay would prevent so much money being spent at once on roads, it would be objected to. We are thinking too much altogether about the fate of those who come after U3. We have urged such views when writing on the benefit a loan would be, it therefore seems more absurd than those who are bearing the brunt of bad roads every day should be asked to continue to do so to oblige someone who succeeds him. Councillors at their last meeting desired to do these things by way of a loan, and would liked to borrow without facing the Burgesses, this is however out of the question, as there are only two ways of getting money — by a loan sanctioned by the ratepayers, or by an overdraft at the bank. Now an overdraft at the bank is not a loan in the proper sense of the word as it is now understood, as there is no length of time for which it can be secured for, and by very short notice the bank can call it up. Even if the bank choose to let it- run from year to year, the cost is far greater than for a public loan. An overdraft is supposed to be obtainable in anticipation of the current year's

revenue enabling the public body to give its ratepayers time to pay up, it was never intended to be used as a fund from Which purchases of pro perky could be made. Thus a purchase of a pit made by aid of an overdraft is in every respect a purchase made out of current revenue and so reduc63 the expending power of the Borough in road making to that extent. It was mentioned the other nigbt that there was an overdraft at the bank, and also that not all tho rates had been* paid. We Would ask Councillors to get a rough estimate of their position before involving the Borough in any large non-productivo expenditure outside of ro&d-inafaing, as of course all the Borough work is of a non-productive character. Our contention is that rates paid for road»making should in no way be diverted from immediate use, even if it was agreed that sjjch expenditure would cause road-making to be oheaper.«at .a. future date. Presents needs are .of greater importance to future cheaper prices.