Manawatu Standard. (PUBLISHED DAILY.) The Oldest Daily Newspaper on the West Coast. FRIDAY, SEPT. 11, 1885. THE BOROUGH LOAN.

Manawatu Standard, Volume X, Issue 1452, 11 September 1885, Page 2

Manawatu Standard. (PUBLISHED DAILY.) The Oldest Daily Newspaper on the West Coast. FRIDAY, SEPT. 11, 1885. THE BOROUGH LOAN.

-■. Public opinion seems considerably exercised at the present time on the question of the Borough Loan. It was generally thought that by this time the expenditure of the first instalment of £ 10,000 would have been proceeding new works in full swing, the working men employed either by contract or day labour, money in brisk circulation, and business and trade humming merrily along. The contrast between what is and what- might have been is only too painfully apparent on all sides and need not here be enlarged upon. Suffice it to say that depression overhangs the place, that no money is in circulation, and that hard times, in the strongest sense of the term, prevail. This is the experience of every business man in the place People are beginning to inquire what is to be the end of it? No doubt the history of our orouch Loan has been at one and the same -time a most eventful and also a most unfortunate one. It will be remembered that when it became apparent, in order to carry out certain indispensable works, that borrowed money was necessary, the first appeal to the ratepayers was unsuccessful, owing to thj opposition chiefly of the ah sei| tee clement, who regarded with dismay the attendant increase of ra,ies. This is one of the great evils of absentee holders — viz., that they have no direct interest in the advancement of the place in which their properties are situated. They hold on for big profits on their investments through the instrumentality of the "■ unearned increment; 1 ' but if asked to put their hands in their pockets to contribute towards the requisite ways and means, in the shape of additional rates, they then come out in their true colours. Well, once again was the Loan question submitted to the public. A Loan Committee was appointed, who did their work most satisfactorily, and everything seemed auspicious. Every effort waa put forth to secure the requisite number of votes in favour, with the result that the Loan was declared carried by considerably over the required .majority. So far, all well. But trouble w;is still ahead. The next thing was to arrange to get the money. At this time a crisis was impending between Russia and England, and all kinds of securities, &c. were fluctuating. Under these circumstances it was deemed advisable to attempt to obtain the money in the Colony, if possible. After strong opposition on the part of a small section in the Borough Council, the Mayor i»nd Town Clerk went down to Wellington, acting in conjunction with the Borough Council's bankers, and Mr Macakthur, and after various interviews had taken place, an offer was made by Sir Julius Vogel, on behalf of the Government Insurance Department, which was of so satisfactory a nature that the Bank ex pressed its opinion that the terms &c. were exceptionally and unprecedentedly favorable. The pity is that the offer was not formally accepted by the Mayor, on behalf of j the Borough, on the spot. But this, as will be seen by the sequel, he exercised a wise discretion in not doing. At the meeting of the Council to finally accept the offrr, Cr James King made it a point to inquire "had the Mayor accepted the offer without first .obtaining the formal consent of the Council."" This will- show what was in store for the Mayor had he done as no doubt he ought, under the circumstances — viz., " clinched the bargain," and obtained the consent of the Council afterwards. The same Cr most inopportunely sought to disparage the offer made, by saying that some other body somewhere in Australia had obtained money at 4>h per cent. The cry was kept up that 5 per cent, was too high, that the ratepayers were about to be robbed for a period of 30 years, and other most discreditable and utterly groundless insinuations were made that certain parties were to benefit pecuniarily by the arrangement made with Sir Julius Vogel. This unseemly j controversy went on, and the next news was that the proposal had fallen through. The Mayor then wrote a very sound, moderate , and excellent letter, which was published in the Stand a kd. setting forth the simple facts and reasonable anticipations with regard to rates, security offered, &c , with a ' view to induce the Department to reconsider their decision. All in vain, however. Tt will be seen thaf at last meeting of the Council, the Union Bank is to he requested to undertake tlio floating of the Loan in the London market. We have a certain amount of mis riving as to the successful results, but hope for the best. No doubt, the prospects of the Loan have been materially

damaged by the ill-timed and petty opposition of a small section m the Council, representing certain outside tnteiests The whole position of matters is most disheartening. After all that has been done, that the town should be now hopelessly thrown back in this way. Whether the Union Hanks negotiations are attended with success or not (and we most sincerely hope they will), considerable time must elapse before any tangible results can ba achieved. Meantime all progress must be at a standstill, and all anticipations with regard to much needed town improvements, water supply, drainage, sewerage, &c, must remain unrealized. The o,utlook is certainly not cheering. In the event of possible failure of the present nogotiations, we may remark by way of an alternative suggestion, that the Borough of Master ton is now inviting tenders for an authorised Gas Loan of dt? 10,000, in 100 Debentures of £100 each, at a minimum of £Q8 per cent., bearing interest at the rate of six pounds per anrum. Interest payable half yearly in New Zealand. Debentures, re-payable Ist October a.d. 1900, secured primarily on the Gas Works, and secondarily on the ordinary revenue of the Borough. The question for consideration might be, in the event of possible contingencies, could a similar proposal be carried into effect say, for a Palinerston North Water Works Loan, of say i?iio,000 ?