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FINANCE COMMITTEE MEETING. THE APPOINTMENT OF A SUCCESSOR. LONDON AND PROVINCIAL BANK'S TERMS. THE QUESTION OF OVERDRAFT. PROPOSED HALF-YEARLY RATES. PAYABLE ON DEMAND. At a meeting of the Finance Committee of the Tenby Corporation, held in the Council Chamber on Monday afternoon, the Deputy Mayor in the chair, the question of the Borough Treasurership was discussed at some length. Mr E. T. Boyce, who held the position, ten- dered his resignation three weeks or so ago, and with a view to the appointment of a suc- cessor the Town Clerk was instructed at a special meeting of the Finance Committee, held on December 5th, to see the local managers of the London and Provincial and National Pro- vincial Banks (Mr Richard Davies and Mr C, C. G. Cooke respectively). These gentlemen were accordingly seen and asked to send in in writing the terms upon which they would take over the Corporation account aud act as' Borough Treasurer. Previous to reading their letters the Town Clerk stated he had received a communication from Mr Boyce, in which he expressed his willingness to carry on the duties of the ollice pending the appointment of a successor. The letters from the local bank managers were then read. Mr Cooke, of the National Provincial Bank, wrote to the effect that his directors could not allow him to quote any terms unless the post of Borough Treasurer were directly offered him. Mr Davies, of the London and Provincial Bank, wrote his bank would be willing to take over the Corporation account on the following terms :—They would allew two per cent. on cash credit balances and he (Mr Davies) would require £50 a year salary as Borough Treasurer. It was remarked by more than one member that nothing was said in the letter about over- draft, whilst in reply to this it was stated that no charge could be made for overdrafts, as pay- ment of interest on same had been declared illegal by the Courts. In the course of the discussion which fol- lowed it was thought by members that JS50 a year salary was quite enough. A resolution was proposed to the effect that the terms of the London and Provincial Bank be accepted, subject to a small committee seeing the manager as to details. The Town Clerk pointed out that a question which would have to be decided was as to whether the two per cent. would be allowed on credit balances monthly, quarterly, half-yearly, or yearly. The point was then raised as to overdrafts. The Town Clerk said that from the way in which the Corporation at present kept their accounts there were periods when in the ordi- nary way they would find themselves over- drawn, and they must provide for such a contingency. It was remarked by a member that they would not get the bank to put in black and white what it was illegal for them to do. The Town Clerk said he would suggest that the matter had better stand over for the Council to consider generally as to how they would make their rates in future. If they were to avoid the contingency of overdrafts they must trade with a credit balance, otherwise they would be liable at any time to have a cheque returned. It would be just as well to have a definite understanding with the bank. It would not be illegal fur them to cash a cheque and create an overdraft, but it would be illegal for the Corporation to pay them money as inte- rest if anyone liked to object. A member suggested whether the Corporation could not put itself in the position of a private individual and ask the bank how much over- draft they could have. The 6ame member added that this was a matter which the Town Council and not a committee must settle. In the course of further discussion, The Town Clerk said it would be necessary to put the question to the bank as to whether they would or would not honour the Corpora- tion's cheques. They (the Council) must not put themselves in anybody's handa without this being perfectly understood. The point was next raised as to whether the jS50 salary did not cover any possible over- draft, it being remarked that once the Corpora- tion got a credit balance this amount would have to come down. It was stated that in order to trade with a credit balance it would be necessary to make the rates half-yearly and payable on demand. It was further remarked that it was well- known to members of that Council that very few ratepayers paid their rates until summonses were threatened and if the rates were made half-yearly and payable on demand the Corpo- ration would be able to trade with a credit balance. Eventually it was unanimously agreed that the Town Clerk should write Mr Davies, of the London and Provincial Bank, to the effect that the Finance Committee approved of the terms offered and were prepared to recommend the Town Council to appoint him Borough Treas- surer, but before doing so would like to know that in the event of the account being over- drawn cheques would be duly honoured. A resolution was also carried to the effect that a special meeting of the Finance Committee be called to go into the finances with a view of ascertaining whether it would be better to make and collect the rates half-yearly,' the Borough Accountant and Treasurer to be present.

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