The Borough Loan.

Manawatu Standard, Volume X, Issue 45, 21 July 1885, Page 3

The Borough Loan.

Our : contemporary ; has through publishing indiscreet and: incorrect .statements m reference to our Borough Loan, brought abont a pretty state of affairs already. The conclusion of the dram* too, we imagine will not be of the most peaceful description, and perhaps by the time things are once more (if allowed) moving- 6venly along and successful negotiations concluded without a hitch, perhaps by that time the impolitic and inconsiderate editor of . the Times will have realized that experience is sornetiiries, although dearly bought, of priceless value. The following which appeared m Saturday's Post commenting On; the statements published by the Times, will not wo fancy raise Palmerston North much m the estimation bf those who are ■watching' its progress just now, that is if they take all the I'ost says, about , the cause of the loan failure as being literally correct :—- -- Tlie Maiiawatu Times endeavours to account for Ihe refusal of the Government Insuraucb. Association Boar. l to complete the eoiibiunlatod loan bf £50,000 to the Borough of P«lmei»ton North, hi a very absurd nummr. It say 9 that evidently the li nance cciu.nittee of the Board stood on its dignity', and refused to complete the transaction because Sir Julius Yogel, as Chairman, had first promised :the loan, without consulting the committee. Nothing could be further from the truth. Sir Julius Yogel took no step m the transaction which he was not fully authorised to : take, ahd there was no standing on dignity at all. Tlie money, would have been lent readily oni the terms proposed had the Board beeu satisfied as to the security. When they cama to examine into this tht-y found that to provide interest on the loan would involve such a very heavy rate that property iv thi» borough would certainly be depreciated m value thereby;^ They, therefore declined to hsnd tIW money. This, and this only, is the reason why the transaction fell through. Another statement by the Mahawatn Times, that the Association the other day sent home : £50,000 for jnyestmeht. is also incorrect." At the antiual meeting Sir Julius Vbgel stated that, as Colonial Triasurer, he had been obliged tp ; send a large sum of trust money Home, for investment, but he added -thai' tjw^ money- in question did uot fprnV&arfeitfv, the funds of the Insurance Association. The "absentee element which the r town-' of Palmerston has nil along had so much* opposition 'from is again only too apparent m the inspiration of \this:pasg- -, graph and. although we donoti'wishsi or£ desire m any way to censure^juit arid ' fair criticism^ still we think 'ftTthur case 1 * .that the Post, has gone btffroT-it&w&y »ttA injure Palmerston by -referring ,in v>the& way it, has to the unwise and untimely remarks on this question published by our local contemporary. The paymeritof^ thi interest is amply pr-pyidedyfoiv-in^the {) estimates of the Council, andwe'believe | we are 'right; m saying that Sir jujiuaji Yogel himself was fully slitiVfied^wM'i' this. We also believe that other experts li m finance are more than satisfied, with! the soundness of the schemes s?piE the** Town Council. As the Post remarks 1 "That the proposed rate to- be- struck' in f ,ord»r to provide for the payment of in-i terest would be so heavy as to cause de-'---preciation m the value of property." We ; can only reply that as a matter of fact-' Mich Bpecial rate is really less than : most New Zealand Boroughs are at present paying for borrowed money. The injury we complain of is that. in the possible placing of the loan on another market^ the comments made by the Post may uh, flueuce against the successful floating of the. loan. In conclusion we trust that -tk&personwha is causing all this bother will withhold-further comment until the present negotiations are; ended.. A word to the wise— but then, we forget. However, we .sincerely hope better counsel than his own will prevail and prevent further complications.