BORROWING POWERS OF COUNTY COUNCILS.

Westport Times, Volume III, Issue 461, 4 February 1869, Page 2

BORROWING POWERS OF COUNTY COUNCILS.

The Hokitika correspondent of the Grey River Argus writes: — There is some gossip in the town to-day, to the effect that large sums of money have been offered by both private parties and the Banks to the County Council for public works. One rumor is, that the Bank of New Zealand is willing to lend the Council £100,000; another is, that a rival institution would even go further. It is also reported that one well-known merchant in town has offered £20,000. Of course, as usual, these rumors are an exaggeration of the truth. I have good authority for saying that fully £60,000 could be borrowed at a moderate rate, if the lenders could be satisfied that the County Council have legal powers to borrow. I am aware that the Premier has been communicated with by telegraph, both by the Bank and the Chairman of the Council, and that the answer of the Government is, that their law adviser is of opinion that the Council has not the power to borrow. This, however, is still an open question, for other lawyers hold a contrary opinion. Until this is settled, therefore, it is not much use thinking about effecting a loan in any other shape than an overdraft. I hear, on good authority, that the Bank of New Zealand have positively offered to allow the Countv to overdraw to the extent of £25,000 at S per cent. It is probable that this offer may be accepted, or partially so, as I cannot possibly see how the many costly works contemplated by the Council are to be completed out of the ordinary revenues of the County.