The Manawatu Standard (PUBLISHED DAILY.) The Oldest Daily-Newspaper on the West Coast. TUESDAY, OCTOBER 27, 1885. THE NORTH ISLAND RAILWAY LOAN.

Manawatu Standard, Volume X, Issue 1491, 27 October 1885, Page 2

The Manawatu Standard (PUBLISHED DAILY.) The Oldest Daily- Newspaper on the West Coast. TUESDAY, OCTOBER 27, 1885. THE NORTH ISLAND RAILWAY LOAN.

authorised loan is held m reserve there is some security' that funds will always be available for the prosecution of this great work ; but if; the money now specifically appropriated to that;work is raised and, under: pretence of being lent, is used for,, other public and defence works, —it' quite possible that at some future tinge, perhaps not a very distant one, funds for the North Island trunk line may tiot.be ayailable, and the. Rub; lie Wprks Fund may be unable to, or southern members may be un-willing-that. ifcishauld, jrepay .. ~w,hat= has been borrowed. We regard the raising of this '-fcorth, Isl^ndt Railway loan, and probable application m whole ;or m part to other works, as a very serious danger to the progress of the Railway, whichisj so esseniially' necessary^to the settlement and development o£ . r tjiis . island. 'It is much to be regretted that the Government should 5 be forced to adppt sucH ,a "'course. Th[e NeV Zealand the! subject ' observes :_«' vVe refuse to believe that the Gpv.ernmetft* ~can| really contemplate; such a.flagitious proceeding. We .prefer to believje that the ostensibly .?* inspired'!**! announcement ot such an intention is made;witho'ut>fauthbricy,,n6twithw standing that one sentence m the, Premier^ speedi' hia'y seem %6 bear' sucli an interpretation. If correctly reported it must, have been uttered cardessly, anil withohi due consideration of the real ; character" of the transaction implied. The loan canhot be raised for. any other purpose than the' 'cotistriictidn of* the" N6rt!TIslaid Main Trunk Railway, there;|qre to spend, its /proceeds on any other work would be a scandalous misappropriation pf.. trust funds, a; !gross fraud alike on the lenders, on the I Colony, and //on,, Parliament,, which only sanctioned the loan for jue particular purpose -specified m t'lfe Empowering "Act; while to raise 1 the j loan l witfi 7 8uch' aii hitd htibtf would clearly be to obtahTthe.m,oney un^rßfe^emeesr-VVe liriceVe^ trust, for the credit's sake of the Goc $ [ the^^pl^n^ |ht|t; an explicit disclaimer; of. any such reprehensible scheme will be promptly given,^? n ■\, .m;>11 " ■ ■'! { )iVI 7/ .' ;

- Our readers will learn with some surprise that it is the intention of the Government to raise the North Island Trunk Railway Loan before Parliament meets. From the Post we learn that the position is as follows : — When the last Public Works loan was raised, the Government abstained from raieuig the million specially authorised >ifor the North Island trunk line. This was done partly on the advice of the loan agents, and as. work onl "'ihe ' Island trunk line has been ' carried on by Vrieans of borrowing from the generahPublic Works Fund, no inconvenience has - yet v&risenv ■ The tacit refusal of the House last session to authorise any fresh general loan renders it necessary ;* ■ ; hdw'ever; that the amount borrowed from the general Public Works Fund, for North Island trunk works should be repaid before very long, and it is even doubtful if when the sunns so | borrowed are repaid that fund will be able to bear the cost -of the «defence.wotks jyhi'chihas to be f met. The probability, indeed, is that the I North Island trunk rai 1 way, instead of being a borrower from the Public WorlisFiind, will/ ere long, hive to become a lender to that fund,and assist to meet the demands for f de? fence expenditure.; Had a new gene? ral loan been authorised as the' 'Government desired, the Nortji .Island loan might still have beenheldoverV 'but the course adopted by the Opposition will have the effect of fore, ing the Government to negotiate it. Our contemporary propeeds further oh to point out that as aftecting iji'e [ North Island, the matter is an im-V portant one. While this specially- .