The Waikto Argus GEORGE EDGECUMBE, Proprietor. WEDNESDAY, JULY 11, 1900.

Waikato Argus, Volume IX, Issue 698, 11 July 1900, Page 2

The Waikto Argus GEORGE EDGECUMBE, Proprietor. WEDNESDAY, JULY 11, 1900.

All parties are agreed that tlie delay in the completion of the North Island Trunk Railway is seriously retarding the progress of the colony, and provided a satisfactory method of finance could be hit upon arc equally unanimous that the work should be pushed on with the utmost celerity. Mr J. P. Maxwell in a letter to the Wellington Post has put forth what appears to us a feasible and economic method of getting over the difficulty. He points out that Lord Cromer, with regard to the great irrigation scheme in Egypt, was situated very much as our Government is at the present time, a great work which is to confer the greatest benefit upon the country was hampered for want of the necessary funds. He could not borrow because the European Powers, who by agreement had a say in the matter, would not allow him. To use Mr Maxwell's words " Lord Cromer solved the difficulty by letting the worts to a firm of contractors, backed by powerful financiers. Works costing several millions were undertaken to be paiJ for on completion by annual payments covering interest and sinking fund, extending over several years. This is a solution which is practicable if it can lie adopted here for the completion of the North Trunk railway. The surveys are complete and accurate quantities can be furnished. An act which should define the time for completion, the minimum wages and the hours of labour, for all workmen employed in the colony, the Customs exemptions, exclusion of coloured labour, except indigenous and comprising a complete specification of the type of railway and plant in every respect, and the duration of the annual payments after completion would probably meet all objections. Such a plan would remove the work from the evil influence of politicians of all shades and the vagaries consequent on changes of Government and Ministers, and the line might be built in three years. The colony would not begin to pay for the work until it became a living and reproductive railway. Under the present system thousands of pounds are squandered extravagantly and unskilfully." The Premier has told the country that it is the intention of the Government to push on the railways under construction with greater celerity than hitherto. This, of course, implies borrowing on a larger scale, with the result that the interest on the money borrowed for railway construction would remain for all time a burden upon the colony. Experience has taught us that a debt once contracted by New Zealand is never really paid off', the sinking funds are seized and the debt remains, and when the loan falls due the usual practice is to borrow more money to meet the specific liability. It is surely a strong argument in favour of Mr Maxwell's suggestion that the colony would not commence to pay interest till the work, which is expected to earn that interest, is in working order. It will be argued that the contractors will not undertake the work and the financing, unless they see a clear profit in front of them. This, of course, is indisputable, but capatilists arc satisfied now-a-days with a low rate of interest, provided the security is good. As Mr Maxwell has pointed out, the present system of executing our publje works is unskilful and extravagant, and he is an authority on the subject. The contractors, who would enter upon the work, would, of course, be experienced and skilful men. Their profit would largely consist of the difference in the cost of the workto them and the sum, under unskilful and extravagant management, the work would cost the colony. MiMaxwell's suggestion is certainly worthy of very careful consideration, As he says, the surveys are all completed, so that the quantities can be taken out, and a fair estimate made of the cost to the colony under the present system. This estimate and the price tendered at would decide as to whether the acceptance of the tender would be to the advantage or detriment of the colony. The purely financial side of the question could be settled by a simple sum in arithmetic when once a fair rate of intesest is agreed upon.