COUNTRY BORROWING.

Stratford Evening Post, Volume XXXIII, Issue 16, 16 May 1912, Page 3

COUNTRY BORROWING.

TWE LIMIT REACHED. -illy the Stratford County Council applied to the New Zealand Stati Cnaranteed Advances Department 1 or a small loan, Imt received from the Department t!ie intimation that tin loa;i could not be granted as the H'.niv for County Councils was £SOOO and tins tihoy barl exceeded. r ilie position was pot quite understood by members, and it was thought that this limit applied only to one year’s borrowing operations. They decided to write to the Department on the subject, and the following was the result of their enquiry : Mr.l. W. poynton, superintendent o| the New Zealand {State-Guaranteed Advances Office, wrote, in reply to an enquiry, that the limit of CIDOO t' l be borrowed by a local body, did no. refer to any one financial year, but was made to apply for an indefinite period. As there v.as no prospect «! such resolution being rescinded in tin near future, it would be useless tor the Council to make any Inrt' er application for some time to come. Councillor Walter moved hat this

Council receive with regret the information that County Councils which have received a total sum of £'sooo from the Now Zealand Government State-Guaranteed Advances could not borrow any more at present for the construction of roads, and think it

wrong policy for any Government in a young country to check Councils from developing their districts, by refusing to advance on loan a reasonable sum per annum for building bridges, road formation and metall-

In speaking to the resolution, Councillor Walter said that Government had advanced as a great tiling in favour of tiie Advances to Settlers’ Act the fact that the Councils would not be tied down to borrow so much per mnum. They brought that forward in favour of the scheme very strongly.

County Councils in young districts were to have an unlimited amount of money lent them to develop their districts. “We have received,” ho continued, “a sudden shock. We are not a young district, and its hard to say what the young districts are receiving. Our borrowing is very little, but we are getting practically nothing at all for what we want. I would like the resolution forwarded to the Minister for Public Works.” Councillor Christoffel seconded the motion. He considered it should be circulated throughout the Dominion.

The motion was carried unanimously, and it was decided to circularise a copy of the motion among thy County Councils of the Dominion.