“NOT INFLUENCED”

Ashburton Guardian, Volume 56, Issue 26, 12 November 1935, Page 3

“NOT INFLUENCED”

government and financiers.

MR COATES DENIES. SUGGESTION

<Per Press Association). DARGAVILLE, Nov. 11. -Suggestions made in certain quarteis that "the Government has been influenced by large financial inkiest, were denied to-day by. the Minister for Finance (the Rt. Hon. J. • Coates) in election speeches m tire Kaipara electorate. Mr Coates sai that in actual fact the Government s legislative programme had often been strongly opposed by financial mter“One of the main objectives of the Government’s policy has been to reduce costs,” said Mr Coates, and spread the burden of the depression as evenly as possible. Since February, 1930, overdraft rates have been reduced from 7 per cent, to 4 j per cent., a statutory reduction of 20 per cent, in mortgage interest and rents has been made, and a similar reduction in the interest on Government and local body securities has been brought about by" conversion operations. The Mortgagors and Tenants Relief Act and the Rural Mortgagors Final Adjustment Act have safeguarded the harassed mortgagor against crushing external difficulties. These ineasuies were strongly opposed hy important financial . interests. So also ivas the establishment of the New Zealand Mortgage Corporation, which is ready proving a strong competitive force in the field of mortgage finance.

“Am- suggestion that the commercial banks have unduly influenced the Government’s policy is effectively answered when one recalls the activ e opposition to raising the exchange, die establishment of the Reserve Bank, and the transfer of gold at mint par. “The inquiry conducted last year into the affairs of the ootid-issuing companies and investment trusts is also clear evidence that the Government has not hesitated to' take action which may offend strong financial groups when this is deemed to be lor the general good. “Although the commercial bans and other financial institutions were opposed in the first place to the measures taken by the Government, they have since co-operated loyally in putting them into effect. There are three financial programmes before the country. The Democrat policy would definitely and inevitably lead to dominance by money interests, while the Labour party’s plan would bring all financial activities witlnn direct control of the State. The Government has steered a middle course. Its policy is to enable finance to play a legitimate part in the promotion of the general welfare, while effecting such control as will safeguard the small investor and the public against exploitation.”