THE LOAN PROPOSALS.

Stratford Evening Post, Volume XXXV, Issue 62, 18 March 1913, Page 5

THE LOAN PROPOSALS.

THE MAYOR REPLIES TO MR RICHARDS.

(To the Editor Stratford Post.)

Sir, —Mr Richards accuses me of advancing a fallacious and strange doctrine, in stating to the ratepayers that “a decision negativing ’amig any loan must necessarily Lave a prejudicial effect on the prog mss of our town.” He further states that my statement is tantamount to saying that a refusal to get into debt is a bar to progress. My statement is neither strange nor fallacious, and certainly does not bear the constriction placed upon it by Mr Richards. In view of the work scheduled by tlie Borough Council during the last 12 months as being necessary to bo done, my statement could hardly oo construed as meaning that if none of the work was carried out (and which can only be done effectively by raising a loan for the purpose) such a decision would bo prejudicial to the progress of our town. For the convenience of the construction lie places upon my statement, Mr Richards refers to such statement as though it were a bald assertion on loan raising without any reference to works to lie carried out, or to the loan proposals in particular. Surely in any discussion or statement made on the loan proposals it is not necessary to reiterate ad nauseum what we are all agreed upon, viz., that there is at the present time a great deal of necessary work to bo done: it is only a question of deciding which shall be done as being the most necessary. On all occasions I make it a practice ot coming to the point without any undue preliminaries, and not making use of any more words than are necessary to explain my meaning, hence in addressing my letter to the ratepayers I avoided doing exactly what Mr Richards apparently desired 1 should do. I agree with Mr Richards “that the wisdom of sanctioning a loan rests primarily on the capacity of the borrower to bear the burden of it,” and I am convinced that Stratford is well able to bear the burden of a loan for an amount at least equal to providing an efficient drainage and water system.' ? As” to previous correspondence proving that Stratford is the most highly rated borough in Taranaki, I think the contrary was proved and that we stood well when compared with other boroughs, not only in Taranaki but also in the dominion. Your correspondent advocates the business people of Stratford extending the sphere of their commercial operations, to which I most readily assent approval, but 1 would go further and advise our people while extending their commercial sphere, not to neglect the development of their domestic requirements. I would ask, if it is not necessary to raise a loan for the development of our town, considered from the point of view of modern civilisation, when will it be necessary or desirable to raise a loan? I say without fear of contradiction that any individual or business concern who failed to borrow a reasonable amount when necessary for development purposes could be said to be without a knowledge of the first principles of finance or sound business. In advocating a reasonable loan to be raised, I do so because I believe it to be sound policy, and as a duty I, as Mayor, owe to the ratepayers.—l am, etc.,

W. P. KIRKWOOD Stratford, 18.3.13.