GOVERNMENT LOANS TO LOCAL BODIES.

Temuka Leader, Issue 1632, 10 September 1887, Page 2

GOVERNMENT LOANS TO LOCAL BODIES.

TO THE EDITOR. Sir,— With regard to the matter treated of in your sub-leader of Tuesday last, may I ask permission to point out that Mr Twnraey in his speech at W«itohi stated that the present Government lent money to local bodies at five per cent, as against a past Government’s terms of nine per cent, He gave no explanation whatever with the statement, without which it would naturally be inferred that the present Government were much more libera! than their predecessors in the matter. He a'so omitted to state that in both cases the annual interest on payments given include a sinking fund, payments in one case extending over 15 years and in the other 26 years. Mr Twomey’s statement without these explanations would lead to the inference that the present Government lend money at four per cent, less than the past one, and it was with a view of correcting this impression that I supplied the information to show that the difference was not so greatly in favor of the present Act. I may mention that the Government Loans Act contains a provision for converting the nine per cent, debentures into five per cents., an) the advisability of such conversion was considered by the i Onuniy Council in the matter of the Opihi bridge Io»n and decided against, on the ground that 15 years Was about long enough to live in debt for a wooden bridge, I quite agree with yon that a future generation may be asked to pay n share of the debts we incur for public works now, but it is only lair, I think, that we let thi ra have some of the works along with the debt. I am afraid, however, that in the case of the Opihi bridge we have only studied to serve our own turn, and I am inclined to the opinion ’hat the public will agree it was wise not | to extend the period in which the loan is i

repayable. You remark, Mr Edito that you cannot understand why I object to cheap money. All I can say is that I certainly do not object to it—rather, it is just the thing I want to get.—l am, etc., John Talbot, Temuka, Sept. Btb, 1887. [lt comes to this then ; By paying 9 per cent, for 15 years, the debt is wiped out under the Roads and Bridges Construction Act; by paying 5 per cent, for 25 years the debt is wiped out under tha Government Lsans to Local Bodies Act. Mr Twomey felt satisfied ths ratepayers present at his meeting knew this, and did not think it necessary to bother them with needless details, Mr Talbot regarded the ratepayers ignorant of these facts and thought it incumbent upon him to enlighten them. What w*»s his object but just to try to moke it appear that Mr Twomey knew nothing about them ; The keen interest Mr Talbot feels in the next generation does him infinite credit. He would not re dace taxation on the present race for fear of doing injustice to the coming race. The present race, however, is so ground down by the weight of taxation that really they might very well be pardoned if they tried to relieve themselves of some of it. Their children, for whom they are working hard, might lawfully bear a share of it, and even if they have to rebuild the bridge they will be better able to do it. Mr Talbot says he wants to get cheap money and does not object to i'. Why did Mr Talbot go to «o much trouble in attacking Mr Twomey then ? Doubtless the answer is ; Mr Talbot would like to get cheap money, but would like to keep Mr Twomey out of Parliament, and the latter passion was stronger than the former.— The Editor.]