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splendid new quarters in the transformed Aske's Haberdashers Schools in the coming
autumn.
A highly satisfactory feature of the last year's work from a ratepayer's point of
view is that all this increased municipal activity and its resulting advantages added to
an increase of the Vestry's assets to a total of £270,714, has been attained by the
levying during the year of a total rate of 5s. 10d. in the £, as against 6s. 3d. in the
previous year, 1896-7, or a reduction of 5d. in the £. It may reasonably be anticipated
(unless the precepts of central autherities increase largely) that the increased
profits of the electricity undertaking will secure a further decrease of the rates
in future.
SHOREDITCH LOCAL DEBT.
The heavy schemes which the Shoreditch Vestry have recently completed and
have still in hand, make the question of the local debt an important and interesting
one, and as there is an essential difference between capital sunk in municipal work,
which is unremunerative from a financial standpoint (such as paving and sewer work),
and capital which is financially remunerative as an investment by producing a profit, it
is important that the growing debt of this Parish should be analysed from this point
of view to appreciate the present financial position of the Vestry. From this standpoint
the municipal autherity which has a million sterling sunk in undertakings
which produce 5 per cent. nett profit thereon is much better off from a financial
point of view than one which has £1,000 sunk in the construction of a new sewer.
The balance of debt outstanding on Lady-Day, 1898 (to the nearest pound
sterling) was £292,574, of which sum £104,815 is due for paving works, street
improvements and sewers, which may be regarded as unremunerative capital expenditure,
altheugh expenditure even under these heads frequently leads to decrease in
the cost of annual maintenance in respect of the streets or sewers affected, or, in the
case of street improvements, by enhancing the value of adjoining property enables a
higher rateable value to be obtained, which, in cases like the Great Eastern Street
Improvement, is a very great financial gain to the Parish.
\
The bulk of the Shoreditch debt, however, is represented by remunerative
capital expenditure which is really a liquid asset, and could be turned into money if
occasion required. Thus: £16,505 of the above debt is represented by Public
Libraries, £48,970 by Public Baths, £9,750 balance of debt of Town Hall and old
Fire Brigade Station, £3,034 by stables and buildings at the Scavenging Wharf,
£20,000 by freehold land at Moira Place, £13,491 by Dust Destructor buildings and
plant, £69,997 by the Electricity undertaking, £4,252 by Public Underground Conveniences.
Thus it will be seen that out of a total debt of £292,574, as much as 64
per cent. is due in respect of realisable assets, whilst 36 per cent. only is unremunerative
capital expenditure. Comparing this with the Shoreditch debt ten years ago in 1888,
I find that out ot a debt of £59,787, only £7,667 or less than 13 per cent. was due in