CHEAP MONEY.

Press, Volume LI, Issue 15173, 11 January 1915, Page 3

CHEAP MONEY.

| WANTED FOR BUILDING

DEPUTATION TO PRIME

MINISTER

(SPKCIAI, TO "the rr.Ess.")

I f WELLINGTON, January 0. A deputation representing builders, architect*-, and owners of timber railis in the country, waited on the Prime Minister to-day. and urged that the State .should come to the rescue of men who wanted' to'build by finding tho iie.as.-_iy money, and so prevent the sawmills being obliged to' close down, as had happened, iv sonio cases parj tialiy, and in others wholly. I One oi" tho speakers said the diflij cv.lv was that- the, building loan. j .granted by too Government wero either | too small or too long delayed. Th". j re-'iilt "as that many /small builders j wore Hie. •'What wo want,'" be I added, "is cheap money ar.d plenty oi H *" . Mil MASSE Y'S REPLY. In replying (according to the ''Post*-'' re*x>rt'i Mr Massey said that in regard to royalties on Crown lands, tho previous deputation, representing the sawmilling industry, made what seemed to la in a reasonable request. However, j there was no possibility of doing anything "mil niter the holidays, and-just

a Jt-.i- -days ago he referred it to the Lands Department, with a request for a report. That report would come to hand in a day or two. and would probably be considered by Cabinet at its next meeting. As to the royalties on Native lands, the moratorium did not apply, and ' could not be made to apply without, legislation. Parliament would not meet tor legislative purposes until towards the end of June, and be could not promise that -the subject would l>o dealt with, though: he hoped that by that timo tho end of the war would be in sight. WHAT THE GOVERNMENT IS DOING. . With regard to the request for an additional supply of money from the Government, he said he hardly thought the public understood what the Government is doing-in this connexion. He knew that the war had had a serious effect on the timber industry, but the Government had dono 'everything possible to meet the difficulty that had

arisen. Take the case of the Advance? to Workers Act. That Act was in full operation to-day, and J_-100 was being

advanced in each case where sufficient security was provided. It was not the Government-which lf"nt.th« money. No | Mini-tor had anything to do with it. 'If he attempted to interfere with the | lending of the money the. Board would probably tell him to mind his own business. The Board was independent of Ministerial control. The Board's only business was to sec that there was sufficient security, and when sufficient security was offering the money, was there. As to tho Advances to Settlers, the Government was actually giving a preference to those-who.-wanted to'borrow money for the purpose of building. Ho did no. know what'more the Government could do. PAPER. MONEY. , ~ r \s to the issue of. paper -..money for tho purposo,. it, would only mean tho La-iie ol so many promissory notes, which would have the'worst possible effect on the credit of the Dominion, and might, cause serious financial depression. .When tho'money market was-suitable the Government would take eai-o that an additional supply of money was brought Into the country for the purposes required. When. the war broke out the finances, wero very satisfactory, more -atisfactory than they had been for many years. But the Government's first duty Was to keep .sufficient monoy so as to see that there was no un'cmploj*;ment, or as little unemployment as possibie. If it had become necessary.--to-close-down public works they .could 'imagine what a very serious stato of affairs would'have.resulted. -The.Government had not found it necessary to discharge a single man. for financial reasons, and it had kept enough ; mouey in hand to keep things:going for a loug time. The Government fully realised the seriousness of'the-position,- but he was glad to be able to say that, from reports he had received, ' matters are better than-they were some time ago. Take, for instance, the erection of workers' homes. There were*more now in c-oiirse of erection than at any preyioiis*time in the history of the scheme. Mr Moore: You are using a lot of Oregon pino income of thorn, i

Mr Massey: '*I did not .know we were, and I can assure you that I am very strongly In favour of giving preference to our own industries. If I had been told that, I would have stopped it long ago." He would, lie said in conclusion, givo careful consideration

to tbo representations of the deputation. * •

Mr Moore: I think you might have taken tip the paper money'scheme and so captured the votes of Labour members in the House'-for the- next- three vear_.

Mr Massey;.'l am not buying votes. ■ (Laughter).