NOT INFLUENCED.

Auckland Star, Volume LXVI, Issue 268, 12 November 1935, Page 11

NOT INFLUENCED.

MR. COATES' DENIAL.

FINANCIAL INTERESTS.

RECORD OF GOVERNMENT.

(By Telegraph.—Own Correspondent.) DARGAVILLE, this day. Suggestions that the Government had been influenced by largo financial interests were denied by the Minister of Finance, Mr. Coates, who addressed four meetings around Dargaville. He cited interest reductions and the restriction of creditors' rights as instances of legislation against such interests, and said that the Government did not lightly interfere with private contracts, but circumstances made its action imperative. It regarded considerations of national welfare as being more important than the strict enforcement of the letter of the contract. These measures were strongly opposed by important financial interests. So also was the establishment of the Mortgage Corporation, which is already providing a strong competitive force in the field of mortgage finance. "Any suggestion that the commercial banks have unduly influenced Government policy is effectively answered when one recalls the active opposition to the raising of the exchange, the establishment of the Reserve Bank and the transfers of the gold at the mint par of exchange," said Mr. Coates. "The inquiry conducted last year into the affairs of bond iesuing 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 for the general good." It was only fair, he added, to state that although the commercial banks and other financial institutions opposed in the first place the measures taken by the Government, they had since cooperated loyally in putting them into effect. "There are three financial programmes before the. country at present," concluded Mr. Coates. "The Democrat policy would definitely and inevitably lead to dominance by money interests, while the Labour party's plans would bring all financial activities within the direct control of the State. The Government has steered a middle course. Its policy is to enable finance to play its legitimate part in promoting the general welfare, while effecting such control ae will safeguard the small investor and the public against exploitation."