THE CONSOLS BILL.

Auckland Star, Volume XXV, Issue 236, 3 October 1894, Page 5

THE CONSOLS BILL.

BEFORE THE LEGISLATIVE'""

COUNCIL.

A HOSTILE MOTION.

(B* TELEGBAPH.—PARLIAMENTARY

BEFORTER.)

Wellington, thia day. When the Consols Bill came up for second reading in the Council yesterday, Sir P. Buckley said that in taking the step Bed forth in this measure the Government was following the Mother Country, which had £760,000,000 in consols.

The Hon. Bowen exhorted every member of the Council, to consider very carefully whether the measure was required by the country and whether it waa likely to prova injuriona. In the preamble to the Bill it was stated that it waa necessaay to encourage thrift, but he never heard of a loan being proposed for the purpose or enabling people to exercise their thrift by lending money to the Government. He did not) think tha Bill would encourage thrift ia tha colony, or prevent investments from people at Home who wished toget4per cent, in placa of 3£. It would be detrimental' to th* interests of the colony to lock up in tha hands of the Government one million which might be profitably invested in settlement and industries, would lead to increase of the unemployed. In conclusion, he moved " that the Bill be read a second time that day six months." '•'".. '"> >\ h > ( ,^

A division was juab about to be bakea when the Hon. Rigg arose! and said that be did nob like the amendment being pub without a few words beiug said in support of the Bill. He asked whether the socalled borrowing of this million was any more borrowing than receiving money ia the Post Office Savings Bank, Both were, he contended, merely deposits with a Stats guarantee. : The Hon. Pbarazyn objected to the unbusinesslike kind of borrowing which. tha Bill provided. It waa said to be a meaaura to encourage thrift : on .the part of tha people, but what was much more wanted was a Bill to encourage thrift on.the paro of the Governments.-« - ** *:'\'

Sir Geo. Whitmore commended 'the measure, and the Hon. Downie Stewartr held thab the Bill vras a subterfuge for borrowing, and borrowing he knew from experience was what people did not want. There was nothing in the Bill that he could see to prevent outsifiorß from coming in. and taking up a million of Consols, and he was opposed to it because it was a borrowing measure. The Hon. McCullough said he would support the Bill. The Hon. Stevens, who followed him, said he would support the amendment. To his mind there was one most important point which had been missed. If money were in the banks awaiting safer, investment, waa it likely it would be lent to tha Government at 3J per cent. Bubject to income tax. Heading the cheap money scheme with this, he said it vras proposed to borrow money from one set of people to lend to another. , ,;,;■ , .

The Ron. Macgrftgor argued that (here was no analogy between these Consols and English Consols. The Bill was borrowing under false pretences, and in no sense ona for encouraging thrift, nor would it have that effect if money had to be borrowed. It was the duty of the Government to say sc, and to obtain it at tho cheapest price. The proper vay to raise a loan was in the London market.

Ob the motion of the Hon. McLean* the debate was then adjourned.