The Daily News. SATURDAY, MARCH 13, 1915. BOROUGH ADMINISTRATION.

Taranaki Daily News, Volume LVII, Issue 235, 13 March 1915, Page 4

The Daily News. SATURDAY, MARCH 13, 1915. BOROUGH ADMINISTRATION.

The carefully elaborated statement made by the Mayor at the meeting of the Borough Council on Monday last contained much matter for reflection and probably engendered considerable disappointment at tlie condition oi the borough finances. It was only fitting, in the serious nature of the financial position into which the Council had drifted, that councillors should, if they were so inclined, have time to review the position before discussing the Finance Committee's report, and a right course was taken in adjourning the matter for two days. Unfortunately, little benefit accrued from the delay, but that wag due, without doubt, to the near approach of tiie municipal elections, and, for that matter, the Mayor's action in making the special review of tho finances bears all the impress of an election address delivered for the purpose of showing the electors that whoever was to blame for the financial muddlo it was certainly not the present occupant of the mayoral chair. Xor does lie blame previous mayors and councillors. Apparently the unsatisfactory position of affairs to-day has been evolved by the same process as that of Topsv—it '-just growed." With that strict sense of honor which has characterised all the Mayor's public life lie completely vindicated the town clerk from the charge of having failed to do his duty to the Council, pointing out that lie had kept the Council fully aware of its financial position from time to time, and especially during the last year had shown the greatest anxiety as to the state of the finances. This attempt to saddle the blame on the town clerk is greatly to be regretted, as there was not a shred of evidence to support it, while, as the Mayor pointed it was entirely undeserved, being made without a proper knowledge of the facts. In bringing the unsatisfactory position of its finances before the Council and in suggesting the remedy, the Mayor and the Finance Committee deserve credit for their courage, but whether or not the whole position lias been explained is quite another matter. From the figures quoted by the Mayor it appears that since March 31, WON, when there was a credit balance of £BBO in the general fund, each succeeding year has shown a deficit varying from .€948 in 1909 to £5509 in 1014. During the period mentioned the sum of" £I6OO was taken from the electric light fund and placed in the general ac-

count. It should also be noted that thera has been an increase in the revenue of £"2788, ao that if to the amount of overdraft there bo added the £IOOO, the increased revenue and the credit balance in 1008, it would appear that the Council has in the period dealt with Hid spent some £10,837 more than the ■evenue, a record that certainly seems o call for definite explanation, especial'y in view of the fact that the streets have been going from bad to worse until they became a disgrace to the Council. The engineer has done all that mortal man could do with the doles of money authorised for street work, and is entitled to the warmest thanks of the citizens as well as to their most sincere sympathy. Where has the money gone? That is just the question which the Mayor appears to have studiously avoided facing, and yet it is the answer to that query that will either justify or condemn the action of the Council. If this sum of approximately £II,OOO has been well spent and forms good permanent assets, there need be no carping or quibbling over the expenditure, large as it is, but if it has largely been frittered then the Council has a serious charge to answer. .There is no question that had the law been strictly adhered to the deficit would have been appreciably greater, but the use of funds in credit to temporarily bolster up the general account has been the means of saving bank interest. We do not blame the Council for its action in this respect, as there is no immorality in taking this course, but it is not strictly correct and though beneficial financially does not disclose the true position of affairs. Hitherto the electric light department has been a veritable friend in need to the Council, but the time has come when that friend should stand on its own. With regard to the remedies which the Council authorised on Wednesday, it would, we consider, have been better had the Council, before deciding on its course of action thoroughly investigated the cause or causes that have brought about the present financial trouble, but the members appear to have cluscd the pages of the past and merely directed their eil'orts to reducing and possibly extinguishing the overdraft. So far as the ratepayers are concerned, it means that they are faced with additional rates amounting to elevenpence ill the pound, including interest on the £•12,0(10 loan. In view of the present time of stress the outlook is not cheering. .Moreover, there are further loan proposals that will have to be faced to the tune of about £20,000, with the certainty that all new works will have to be the subject of further loans. The striding of a separate hospital rate will not ail'cet the position though it will relieve the general fund from the burden of this account. The scheme as a whole will probably serve the end in view, hut there will still exist the urgent need for tin; most careful administration of borough affairs. Who is to blame for'the present muddle is a matter that the ratepayers might well enquire into if they feel so inclined, and ill view of the approaching elections they would do well to obtain representatives on the Council who possess the necessary qualifications. The one great need above all others is that of a sound, strong, financial leader.