The Manawatu Standard (PUBLISHED DAILY.) The Oldest Daily Newspaper on tne West Coast. FRIDAY, JUNE 18, 1886. FURTHER BORROWING BY LOCAL BODIES.

Manawatu Standard, Volume XII, Issue 1737, 18 June 1886, Page 2

Manawatu Standard (PUBLISHED DAILY.) The Oldest Daily Newspaper on tne West Coast. FRIDAY, JUNE 18, 1886. FURTHER BORROWING BY LOCAL BODIES.

Sib Julius VoGEt, true to his ideas of progress by "leaps aiaUf bounds/ 1 has introduced two new measures, ope called w The.Goi s vernment Loans to Local Bodies Bill" and the other «*fheVl,ocal Bodies Loans Bill.* To the latter ] we shall refer m the first place! The Bill 'has been brought forward with the ostensible view of enabling local bodies to raise money bjr way of loan, and to make provision for the repayment thereof. It gives local authorities power to raise loans for public works or other undertakings, including the erection of school buildings, the loans to be secured on a special rate to be levied for the provision of interest and sinking fund. Loans may be raised, without taking a the ratepayers," to clear off liabilities or overdraft, and to^pay off or consolidate loans raised and secured bin special rates; any moneys to be raised by loan to be paid into a k separate account, but first year's interest may be paid out of loan; special rates to be applicable only to the loans for which they are raised. Where the fatepayers of any district do ; not exceed 1 00, local bodies may^ raises ,an4l levy a special rate without taking a poll of the, ratepayers; special 'rate : to be 10 per"; .cent. hipfe^ihan estimated charges m respect of loans, and may be amended from time ; to time , ]if . not; found ' sufficient ■■, to meet charges, but the amount . cannot be diminished without the approval of . the Controller. It is further provided that if he coupons or debentures are not paid when due, a Receiver may fte appointed, and the Judges of the Supreme Court may order the work constructed out of loan to be sold. The »b*>ve are some of the outlines

must confess we do not greatly admire. It appears to be essentially a Vogelian measure. Borrow, borrow, borrow, as long and as often as you can, and on any security, real or imaginary, present or prospective. Never mind about the interest, that'll be all right. Sufficient unto the day is tbe evil there■o£ Get the money m the first place, and, arrange about the interest afterwards. It will come out all right m the long run. Spend it on what you" like, so long as you get the money m circulation. You won't hare to pay any interest the first year. It can be paid out of principal. (By the way, this is i something the style m which Taylor used to invest money for chents.) By and bye, when tl^e money is all spent, and perhaps nothing to show: for it, and you can't pay the interest, then the works constructed may have to be •old. But there is not much danger of that. The Government won't be hard upon you* And there is very little chance of a purchaser ,being found. So you needn't bother your heads much about that. Get the money and begin to spend it as soon as you like. It'll make times rosy while it lasts, and remove the depression, Don't worry about apvthing else. We want you tq go ahead by "leaps and bounds." This is about the sum and substances of the matter. The', Treasurer has found out that he can't have his own way m running the into further debt, so he strikes the' happy idea of setting all the local bodies borrowing, each - emulating the other, as to which will Dorrow most recklessly. Well, if the Bill is. passed, we predict a disastrous re-action within the/-.next few years, compared to which the present depression ginks into insignificance. Nine- tenths of the bodies will be hopelessly involved, and foreclosure of the works so constructed will be the order of the day. The whole tenor of the Bill is to en6gender improvidence, recklessness and extravagance, and to destroy self-reliance. The bodies will be completely demoralized, and the worst possible results will be sure to happen. There are not wanting the special allurements insidiously "introduced m order to "fetch" the public. But the underlying principle is $$ same, Borrow, , ',' borrow, borrow. .. In a commercial as well as a moral, social and political sense, we venture to predict universal evil attending the passing of the BiUfwhrcK; can only temporarily afford relief, by creating a transient and fictitious prosperity, but must bring m its train insolvoncy and inevitable repudiation, with the only alternative of crushing taxation, involving ruin m credit, reputation and prospects m either^case^ v Eet the -' Colonial Treasurer gloss over the the measure with allurements and erabel. lishments as he likes, the rugged truth remains that the, local bodies' are invited to borrow until further orders, and to avoid all consideration as to future responsibility with regard to payment of interest and repayment of principal.