Raising the Loan.

Patea Mail, 26 July 1882, Page 2

Raising the Loan.

Another special meeting o£ the Borough Council was held on Monday evening, to settle details about the proposed loan of £IO,OOO. All the Councillors were present, the Mayor presiding. Period of Loan—a Sinking Fund or Not? The Mayor moved il That the proposed loan be raised without-a sinking fund, and that the whole be payable 15 years from the date of issuing debentures," He said lenders would prefer a long term ; and he thought the borough might expect to be able, before the end of 15 years, to raise a much larger loan and pay off the present one. Councillor Taplin seconded the motion. Councillor Milroy moved “ That 1 per cent, be set aside as a sinking fund.” This was a small provision to make, but it would enable the loan to be raised on easier terms. Water and lighting would have to be provided for before long ; and by repaying £IOO a year of the loan, there would be less.difficulty in meeting those future requirements. ... Councillor Blacks seconded the amendment. The Mayor said £ISOO in fifteen years was not worth calling a sinking fund. Councillor Milroy : It would amount to more than that—£2,soo. Mayor: Yes, with'compound interest ; but there would have to be sinking fund commissioner’s appointed, who would have to, invest the money, and for £IQO a-year it is not worth while; Councillor Adams opposed the sinking fund. It might do in a settled place, but a new town should look to increase of population to provide for repayment of the loan. In the next ten years he hoped that L 30,000 to L 40,000 would be spent in town improvements. Cr Aitchison : If 1 per cent, sinking fund will cheapen the loan, I should support it ; but will it do that ? Mayor : During the previous scheme I was assured by money-lenders that the absence of a sinking fund Would not prejudice a’loan for a town like this. Amendment put : Ayes : Milroy, Black, and Dixon. Against 1 per cent, sinking fund, Taplin, Aitchison, Howitt, Adams, Gibson, Mahony and the Mayor. Lost by 7 to 3. in favor of 15 years without sinking fund was then carried without division. Time for Expenditure. Comncillor Taplin moved “ That the expenditure of the loan of £IO,OOO extend over a period of three years.” Councillor Dixon : Is it necessary to limit the time over which this loan shall be expended? Mayor ;Tt is a question that ought to be settled because it might be asked at the public meeting. Councillor Adams : If it be made five years. I will it. : ! ; Uduncillor tlowitt seconded three years. Councillor Milroy.: Nearly half the loan will be swamped in drain pipes ; and the people would have to pay interest for what?—-for no improvements at all. What is immediately required is drainage. It is before even the widening of the road. (Mayor: Hear, hear.) You see the people, swamped in every corner, and and yet you propose to extend the expenditure for three years. It ought to be judiciously expended inside of 18 months* and the people could then be reaping benefits from it. We are driving people’ away for want of employment. Councillor Howitt: I would prefer to see it two years ; but I don’t see why £SOOO of it could not be spent in the first year. That would meet the emergency. Councillor Taplin : I am willing to alter it.

Councillor Adams : To spend it in two •years would ruin many people here. It would make a flare and then a regular burst up. We should progress at a moderate pace. What does Councillor Milroy intend doing after the 18 months are over, to keep the population here ? We cannot borrow another £IO,OOO in three years. Councillor Black thought that such works as Bedford street would have to be finished quickly when begun, or traffic would be impeded. They should push the work on, and trust to Providence. Councillor Milroy : What do you want to keep an Engineering staff at £3OO a year for ? .

Mayor : I support the motion for three years. Five years would be too long, and two years would be too short. Some of these works will require con-

siderable time for execution. As fast sa the work can be done judiciously, let it be done. Councillor Milroy moved an amendment in favor of two years. Councillor Gibson preferred to see it left an open question. Amendment lapsed, not being seconded. Councillor Aitchison moved that the time for expenditure be left an open question. Councillor Gibson seconded. Councillor Milroy supported the amendment. Councillor Taplin said the bulk of the money could be spent in the first two years ; but it would be injurious to create an artificial prosperitj' by rushing all the expenditure in a short time, to be followed by a severe reaction, like that following the late railway contract. Amendment put ; Ayes, Milroy, Black, Aitchison, Dixon, Gibson, and Mahony. Against the time being left open, Taplin, Howitt, Adams, and Mayor. Amendment carried by 6 to 4. Special Rate. Councillor Milroy moved “ That a special rate of 9d in the pound on the full valuation of the borough, with all rents and profits on reserves, be pledged as interest on the loan of £IO,OOO. to be raised." This would be a pledge to the lenders, but it did not follow that the rate would have to be collected. Councillor Mahony seconded. Councillor Taplin : This will be a good resolution, if you want to throw out the loan. • ; Mayor deprecated any special rate. "It might create alarm and prevent people from voting for the loan. As to the lenders’ security, the whole revenue of the borough could be pledged. Councillor Gibson moved that the special rate be 6d in the pound. Councillor Aitchison seconded. ' Mayor regretted that a special rate should be proposed at all, but rather than imperil the carrying of the loan, he would support the amendment for 6.1, in the hope that they would try to be unanimous on that. Amendment for 6d was put and carried on the voices. Councillor Taplin now wished to move a further amendment against any special rate, but the Mayor ruled that his would not be a proper amendment. Councillor Taplin protested. The amendment just- carried -was then put as a substantive motion and adopted. The loan proposal is now being advertised during four weeks. A public meeting will then be held, and after it a ballot will be, taken. Tenders will then be invited for the loan.