The Manawatu Herald. Tuesday, April, 27, 1909. DOES DEBT PAY?

Manawatu Herald, Volume XXXI, Issue 453, 27 April 1909, Page 2

The Manawatu Herald. Tuesday, April, 27, 1909. DOES DEBT PAY?

It was the immortal Micawber, who said, “Annual income expenditure £99 19s 1 id, result happiness; annual income, £99 19s 1 id, expenditure result misery,” or words to that effect. There is no doubt that while there is a substratum of truth in this theory as applied to the individual, it will not hold water for one moment when applied to a municipality. With the elections so close upon us, it would seem to be a filling time to consider whether we shall support the followers of Micawber in municipal finance, or the meii whose progressive programmes and personalities will involve the expenditure (and therefore presumably the borrowing) of a considerable amount of money. We will commence with the axiom that municipal debt pays. What is wanted, and wanted badly in Foxton, is more municipal borrowing. The cessation of this means not that the burgesses will be auy better off, but that they will be very much worse off. Disabuse your mind of the lime - worn theory that municipal debt should not increase any faster than rateable values. Compare a borrowing policy for gas as instanced by the two towns of Manchester and Liverpool. The former town has its own gas, the latter buys it from a company. The capital of the municipal gas works was The capital of the private company was ,£1,918,011. Manchester gas of 19 caudle power cost to produce is gd per 1000 ft, and was sold at 2s 3d. Liverpool gas of 20 caudle power cost 2s id and was sold at 2s gd. The gross profits (including bye - products) were: Liverpool B)£d per 1000 ft, Manchester 7 }4d per 1000 ft. The former profits went into the pockets of the shareholders ; Manchester put 3d per 1000 ft into interest and sinking fund, and applied 4d per 1000 ft to the reduction of rates. They made on gas a total yearly profit of £70,000. Did debt pay ? Would it have paid light here in Foxton for a similar purpose? Won’t it pay for a water and drainage scheme ? And there is far more in it than the mere percentage of profits. Consider the reduction in fire insurance, and the increased sense of securH cT and drainage scheme will give. Isn’t that an asset ? Surely we’ve had enough of the“Taihoa” policy in Foxtou. Suppose we turn in our sleep and shake off a little of the blue mould with which lengthy stagnation has covered us. Vote for the men whom you know will not be afraid to speud your money, and who will see that there is a profit on the investment, or the Debt, whichever you like to call it. Municipal debt DOES pay.