BORROWING BY LOCAL BODIES.

Wairarapa Age, Volume XXXI, Issue 9189, 8 September 1908, Page 4

BORROWING BY LOCAL BODIES.

Discussing borrowing by local bodies the Otago " Daily Times" expresses the opinion that ifc is possible to agree that the protest raised by Mr Laurenson in the Lower Housu against what he terms the saturnalia of local borrowing is entirely welltimed, and yet to realise, as the Prime Minister does, the difficulty of checking the tendency on the part of harbour boards and municipal 'councils to increase their indebtedness as extensively aa they are now doing. So long as the local bodies have security to offer to investors for the loans they desire, and so long as they can raise funds at reasonably low rate 3, it would be an exceedingly invidious act on the part of the Legislature to veto any of the borrowing i proposals which are submitted to it ; on behalf of local authorities for its approval. But it must be apparent : that the growth of the borrowing of local bodies, combined with the : heavy borrowing on the part of the I Government cannot be without its ■ effect on the money market and on ! the credit of the country. The Do- j i minion itself simply cannot absorb ; loans to any considerable amount except at the cost of such a hardeu--1 ing in the price of money as must be - injurious to industrial enterprise."