Manual of Library Economy / Third and Memorial Edition

by James Duff Brown; W. C. Berwick Sayers

36.

36. The arrangements for loans in Ireland and Scotland are somewhat similar to those just described. In Ireland no power to borrow was given under the principal Act, but the Amendment Act of 1877 gives the power, provided the commissioners of His Majesty’s Treasury approve. The Commissioners of Public Works in Ireland may lend, and power is given to mortgage, as security, either the borough fund, town fund, or the library rate itself. In Scotland the local authority may borrow, without any other consent, on mortgage or bond on the security of the library rate, a sum or sums not exceeding the capital sum represented by one-fourth part of the library rate, capitalized at the rate of twenty years’ purchase of such sum. A sinking fund must be formed, consisting of an annual sum equal to one-fiftieth part of the money borrowed, which is to be invested and applied to the purpose of extinguishing the debt.

Before leaving the question of loans, it may be well to offer a word of warning against the danger of overborrowing, which has very seriously crippled the work of various libraries. In some places as much as one-half the library income has to be devoted to the repayment of principal and interest of loans; in others, one-third is similarly spent. One-fourth is the maximum which in any case should be set apart for the purpose.

37. Assessment to Rates and Taxes.

37. Assessment to Rates and Taxes.—The assessment of public library buildings to rates and taxes has been for long a burning question, and is still far from final settlement. The limitation of the library rate to a penny in the pound has always been considered by library authorities a strong reason why all additional burdens on the meagre income raised thereby should be resisted. But all local authorities and assessment committees did not think likewise, and a good deal of friction resulted.

In 1843 was passed “An Act to exempt from County, Borough, Parochial, and other Local Rates, Land and Buildings occupied by Scientific or Literary Societies,” 6 & 7 Vict., c. 36, under which a few public libraries obtained certificates of exemption from the payment of local rates, from the Registrar of Friendly Societies, as allowed by this Act. Some of these certificates were recognized by the rating authorities, others were ignored, and it was frequently maintained that a public library was not a scientific or literary society within the meaning of the Act. In 1896, however, a complete change took place as regards this point, by a decision of the House of Lords, which ruled that public libraries were literary societies or institutions for the purposes of the “Income Tax Act of 1842,” under which such institutions were granted exemption from the payment of income tax. Although the case, brought by the Corporation of Manchester against the Surveyor of Income Tax for Manchester, did not directly refer to the Act of 1843, the decision that public libraries were literary institutions effected all that was necessary for the purpose of claiming exemption from local rates under the “Literary Societies Act of 1843.” A full report of this case and decision is printed in the Library for 1896, in the Times law reports and elsewhere. The effect of this decision was to remove any doubt from the mind of the Registrar of Friendly Societies, who has power under the Act to grant certificates exempting public libraries from the payment of local rates, and as a result many libraries obtained certificates, and now enjoy complete or partial exemption. It is not necessary to quote the Act of 1843, which can be obtained for one penny from the King’s printers, but the procedure requisite for obtaining a certificate of exemption may be noted.

38.

38. An application claiming exemption under the 1843 Act must be addressed to the Registrar of Friendly Societies at London, Edinburgh or Dublin, as the case may require. With this must be enclosed a copy of the rules and regulations of the library, signed by the chairman and three members of committee, and countersigned by the clerk or librarian. These rules must include the following, or others in similar terms:—

1. “The —— Public Library is a society established for purposes of literature and science exclusively.”

2. “The library is supported in part by a rate levied in accordance with the Public Libraries Acts, and in part by annual voluntary contributions of money and gifts of books and periodicals. The Library Committee shall not make any dividend, gift, division or bonus in money unto or between any of the members.”