STATE GUARANTEES.

Wairarapa Age, Volume XXXII, Issue 10035, 8 July 1910, Page 4

STATE GUARANTEES.

Replying to a deputation from the Muncicipal Conference in Wellington, the Premier, Sir Jnspeh Ward, i said he could not commit himself on j thelsrge financial question of extending the State guarantee system to embrace existing loans. During the •short time the Act .toad-been in oper-, atioh immense advantages had beea .derived by many heal bodies; At the present tima the board was lend[ing '£Boo,ooo to £l,ooo Mo\ a year.; He recognised that the security ws good, but the Stat3 would not be justified in guaranteeing so many millions of money. The] guarantee of the whole country had to betaken into consideration in loan matters. Large sums of money were needed for public works and other undertakings, and if the law was amended in order to undertake the responsibility of getting the local bodies a lower rate of interest it very seriously injure the general rate on which the Government now borrowed, for the country. There was a limit to everything. It was highly undesirable that such a course, as suggested should be brought about. There were too many difficulties in the way. In conclusion, he hoped before long to be able to forward the delegates a copy x>f the Municipal Bill which he was anxious to see passed. It would confer wider advantages on municipalities, who were undertaking now so many new things compared with former days.