Untitled

Poverty Bay Standard, Volume XI, Issue 1321, 26 June 1883, Page 2

By dint of great perseverance on the part of His Worship the Mayor and Councillor Townley, assisted by other Councillors who have the interests of the district at heart, and in the face of great opposition on the part of those who have only their own interests in view, the joint application for the £4OOO loan was forwarded to head-quarters last Friday. When we look at the great advantage which is likely to accrue to the township and the whole district at so small a cost, we are greatly surprised that the thing should have been met with not only indifference, but also strong opposition on the part of those who, we think, should have given it every support. When money can be obtained on such terms as those offered by Government under the Roads and Bridges Construction Act, it is certainly wrong to let any work of great public utility remain unperformed. As we are certain that a number of our ratepayers are not exactly aware of the great advantages offered to local bodies under this Act, we will endeavor to make it plain. If .£lOOO be granted by Government under this Act, the repayment required by Government will be £250, spread over a term of ten years, or in other words, £25 per annum for ten years Now on this sum being granted, and not being immediately required, and providing the sum is placed at the disposal of the body at once, it could be placed in the bank at the current rate of interest, until certain payments on account of the works had to be made. On this principle, if the £lOOO were to remain in the bank at 7 per cent, interest for six months, it would produce £35, and if at the end of nine months one-fourth were to be again withdrawn, and the remainder left to bear interest, it would have produced a further sum of £l7 10s, and the remainder of the sum at the end of twelve months would have produced another £8 15s, altogether producing the sum of £6l ss; this, de ducted from the original sum of £250. would only leave a balance of £lBB 15s to be paid in ten years, or, say in round numbers, scarcely £l9 per annum for ten years. But then, again, this sum would be further reduced, as the first payment to Government of £25 o.ut of interest produced from the loan would leave a balance in bank of £36 ss, which would again bear interest at 7 per cent., increase the £36 5s to say £3B 15~. After the £25 had again been d “ducted for the second annual repayment, it would again leave a balance to bear interest. We need not go further. The above figures being only an approximation to show that

| really the grant is all but In name a gift. 5 We "4o not think it necessary to say any- • thing as to the great advantages to be derived from these grants, save that the amount to he raised by special rate, or paid out of ordinary rates, is almost nominal. We likewise, wish to poini out our public men who are looking at things without the aid of green spectacles, and who are untiring in their efforts to combat the obstructionists. As to the ratepayers votes there is little to be feared on this point.