THE CONSOLS BILL

Auckland Star, Volume XXV, Issue 237, 4 October 1894, Page 2

THE CONSOLS BILL

DEBATE IN THE COUNCIL,

(BY TELEGRAPH. —PARLIAMENTARY BE

POHTEii.)

Wellington, this day

This measure was again under diecuß9ion in Council yesterday, and its second reading waß carried attar the Colonial Secretary had intimated the intention of the Treasurer to limit the amount to bo raised to half a million for two years.

.In supporting the amendment that the Bill shoaid bo read a second time cix months hence, the Hon. McLean said that ib was advisable that further consideration should be given to a measure of such importance. He was very doubtful if money could bo raised within the colony, as some seomed to suppose. It had been said that tho Bunks wero overflowiug with money, n statement which ought to be contradicted. Tho institution with which be was connected could do with £500,000 or £600,000 more. It was not advisable for tho Treasurer to take trueb funds, for these had been mosb beneiicial in developing the country, particularly in the North laland. The Government could not touch any money tvithout touchingindustriesandaffectingthem injuriously, for scarcity of money always meant depression. Ib was when" money rose in value that things were prosperous. The more the Treasurer withdrew from banks the more he withdrew from the industries of the country, for th'o? banks did not keep money locked up in their safes, they put it into profitable employmonb. Mr McLean rather pooh-poohed the idea of such money being hoarded in Now Zealand. The country was coo young, and not wealthy enough for that at present. He was against the Bill, but if the Govornmont would reduce the amount to be raised, he might be prepared to accept it, so.thai the scheme might have a trial. Ho strenuously objected to the clause providing that Consols might bo converted into inscribed stock in London. There was far too much inscribed stock accumulating. With propbotic solemnity, Mr McLean said that one day there would be a serious awakening, when tho colony would find itself surrounded by a large public debt. 4 He understood that .the Council could 'not touch the Bill, as it was a money Bill. He could not vote for a million yet. if the Government would agifee to try a quarter million for tho firao year he would be prepared to support it. His own firm opinion, however, notwithstanding this promised concession, was that tho measure would be a failure, even if things were going prosperously, and much more so in tho present condition of affairs.

To the Hon. Kelly the scheme appeared safe and wise, and providing an excellent investment! for public money. He knew there was an outcry against borrowing, but as the country was clamouring for roads and bridges money must be got. The Hon. Oliver then asked the Attorney General whether he was prepared to adopt tho suggestion thrown out by the Hon. McLean. He would bo prepared to accept the Bill if its operations were confined to reasonable limits.

The same position was taken ilp by the Hon. Bonar. There was nob, he eaid, the amount' of spare cash in existence which many people asserted, and the money proposed to be raised would have to come from useful employment in the industries of the colony. He promised, however, in the event of reduction in the amount to be raised to give the matter further consideration.

Warm support of the measure came from the Hon. Kerr, who held that it would give the people of the colony real and secure investment for their money.

The Hon. J. B. Whyte expressed himself williDg to assume that the objocb of the Bill was to give tho people safe investment for their money, but be was very doubtful if ib would attain that object. In 1872 Sir Harry Atkinson introduced a somewhat similar measure. • Every penny raieed under that Bill was ultimately turned into inscribed stock. He was of opinion that there might be £10,000, or even £100,000, which might be got for investment in console, but certainly there would not bo more. As to small sums boing invested in that way, he was sure it would nob bo the case, and, after these objections, there was tho question what was to be done with tho money if ib could be raised. Unless the amount wa3 very much reduced ho cpuldnot 868 hia wjiy to iluppof 6 t^e measure."""' "

The Hon. Reynolds reiterated the nowfamiliar assertion ttiab every member of,the Lower House was returned to Parliament at the'general elecbion on the understanding that he Was pledged to nbn-borrowing. For that reason he could not see his way to supporb the Bill, which was a .borrowing measure, until the opinion of the country had been obtaiued on it. Sir Patrick; Buckley then rose, and said that, after consultation with the Treasurer, he had beon authorised to cay that the latter would, by Governor's message, reduce the amount to half a million, extending over two years. The Bill had been debated in a manner ho had never witnessed before, there being a stern determination visible to.kill-ib. He then thanked the Hon. McLean for coming to the rescue, and hoped the compromise he had made would be to.the satisfaction of the Council. -.;<:■:<

A division was then taken, and the second reading carried by 16 ; to 'iiy'\ The noes were—Reyiiolcls, Stewart, Barnicoab, Swanson, Pharazyn, Williamsj Macgregor,; Morris, Bowen,! .Stevens, Holmes, Manbell and Peacock. AyesWalker, Richardson, Bonar, Bolt, Kejr, Kelly, Rigg, Jenkinson.Feldwick, Dignan, Acland, Oliver, McLean, Whyte,.^Montgomery and Buckley, y -■ /' '