Until late yoars municipal stock was rcgar<lc<l as a good in\cst- 

 nieiit, and there was rarely any dirticiilty in raising a nuniicipal lijaii, 

 the secvu-ity (viz., the rates) being regarded as first rate: but during 

 the last few years the borrowing has l)econie so enormous, as evinced 

 by the figures I have just quoted, that municipal loans are no longer 

 regarded as so largely gilt edge<l as they used to l)e ; and c<jlonial 

 municipalities wisliing to borrnjw on the London market find they 

 are unable to obtain the terms which they once did, and indeed in 

 more than one case lately have had to pay a stiff price fur theii- 

 money. 



The <|uestion of municipal borrowing naturally brings us to the 

 question of what the money is boi-rowed for. The outstanding 

 loans of local authorities in England and Wales ten years ago were 

 £262,000,000, of whi(;h the following were the principal headings of 

 expenditure in round figures : — 



Waterworks ... ... ... £4^,000,000 



Harbours, piers, docks and (juays ... 34,000,000 



Highways, including street improvements 31,000,000 



Schools^ ... ... ... ... 30,000,000 



Sewerage ... ... ... ... 27,000,000 



Gasworks... ... ... ... 18,000,000 



Poor Law purposes, i.e. workhouses, itc. ... 9,000,000 



Markets ... ... ... 6,000,000 



Parks ... ... ... ... 5,000,000 



Public buildings ... ... ... 5,000,000 



Lunatic asylums ... ... ... 5,000,000 



Housing working classes ... ... 5,000,000 



Bridges ... ... ... ... 4,000,000 



Electric lighting ... ... ... 4,000,000 



Tramways ... ... ... .. 4,000,000 



I have been unable to oVjtain the figures at date, but the headings 

 will be the same, and pretty much in the same proportions. 



Now the advocates of no municipal trading would practically 

 allow no borrowing for waterworks, tramways, harbours, gas works, 

 or electric light, contending that all these should l>e carried out by 

 private enterprise. Those who are in favour of modei'ate municipal 

 trading would approve of all expenditure under most of the headings 

 mentioned. While those who want greater municipal trading would 

 have very many more headings, and much more expenditure : and 

 this brings us at once to the main point, to my minrl, of what the 

 duties of a municipality are, and I think I may with advantage quote 

 from L<jrd Avebury, who states : '' The real problem seems 'to be 

 whether municipalities are to govern or to trade. They cannot well 

 <lo both -at least they cannot do both well. Take, foi- instance, the 

 ♦question of water : at present in London the companies supply and the 

 County Council watches over tlie purity ; if the County Council sup- 

 plies, who will supervise ? (Juifi cu.-itodiet ip.tos cH.-<iocle.s ? The two 

 functions are incompatible " 



