MUNICIPAL FINANCE.
WELLINGTON CITY’S PROBLEM. t “THE POSITION IS SERIOUS” w By Tdejrapb—Press Association Wellington, June 24. “The position ia serious; I have never had to do with anything like it in my life,” said the Mayor (Mr. Wright) when reviewing the city finances at the meeting of the City Council last night. He then laid upon the table a statement showing the city indebtedness to be as follows: District fund, £236,195; electric lighting, £7703; tramwaya, £90,107; total, £334,206. There were certain accounts in credit, and these were set off against the debits, merely for the purpose of interest calculation. This was the only set-off against the large sum of £334,205. It seemed to him the position was grave. During the past week he had sounded every lending firm and company he knew of in the city, and there was not one of them had a shiH : ” r to lend. A bank manager told him it was impossible to go on as at present. The council had to be carried on the back of the bank, and the overdraft would pile up till the rates came in. The whole of the rales would be swallowed up in one week and the council would still owe a large amount. In regard to the city’s half million loan the Mayor said he had waited r.n I the Acting Premier & number of times to ask him if the embargo on raising the Wellington loan in London could be removed. Sir .'Francis Bell had said “No, it cannot be removed till the Government gets its loan.” At the same time Sir Francis Bell had said that he did not anticipate the city would have any difficulty in raising the loan, because the city security was bettor even than the Government’s, since in the first place there was the city’s own special rate, and in the second plaoq there was the Government guarantee.
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Taranaki Daily News, 25 June 1921, Page 4
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318MUNICIPAL FINANCE. Taranaki Daily News, 25 June 1921, Page 4
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