THE BORROWING POWERS OF COUNTIES.

Nelson Evening Mail, Volume XI, Issue 226, 19 October 1876, Page 4

THE BORROWING POWERS OF COUNTIES.

We take the following from the N Z. Times ol Tuesday: — The action taken by the Legislative \ Council last night in throwing out all the loan clauses in the Counties Bill can only be characterised as positively mischievous. It is utterly impossible for the counties scheme to be workable deprived as they wili he of the sinews oi war. Tbe Hon Colonel Whitmore, who moved the excision oi the clauses, made a strong point in stating that similar powers had been denied to the provincial authorities, but his arguments were most satisfactorily refuted by the Hon Dr Pollen, who pointed out that if the hon gentleman's proposil was carried, it would virtually rob the people of the right of taxing themselves for reproductive works. The arguments of some hon members in support of their proposals were truly unique. The Hon Mr Holmes informed (he House with the utmost gravity, that shearers were positively asking 203 per hundred. This was a fact from which they should all take warning, lor it clearly showed tbat tbere was a ecarcity of labor. If ihey gave borrowing powers to the counties, new works would be commenced, and they would Lave another competitor to contend against in the labor market which could only result in higher wages than «t present. Therefore the county corporations— bodies without souls — must be deprived of life even by being refused borrowing powers. The Hon Mr Holmes argues from a personal point of view, so it is hardly lair to nixpect his reasoning faculties to be oi a high order, or his knowledge of political economy to be particularly profound; but that a deliberative assembly ahould accept such twaddle as logical reason, and support it on a vote by a considerable majority, is almost incredible. The Hon Mr Robinson also distinguished himself on ihe labor question, eefoing his brother squatter's views on the necessity of keeping wn^es down, although what that haa to do with the question of a body corporate's power to borrow from any lender who may be wise or foolish enough to accept its security, we have yet to learn. We can only hope that the strong common sense which we know to exist in the Council as a body will rescue them from the error they have committed in acting on logic and advice of a decidedly curious character, and rendering abortive a measure which would have given to tbe people of New Zealand a real system of local self govern-

ment. The Council might, without objection, bave deprived the county councils of general borrowing powers, but not of the special powers which involved direct sanction of the ratepayers for any loan, and thereby give proper security against heedless or irresponsible borrowing.