THE COUNCIL.

Dominion, Volume 1, Issue 288, 29 August 1908, Page 7

THE COUNCIL.

AGAINST FINANCIAL,PANICS. PAPER CURRENCY ADVOCATED., The Legislative ' Council met at 2.30 yesterday afternoon. " The' Hon. J.yRIGG (Wellington) moved:—. lhat the Uoyornment bo rocommeiided to introduce a Bill to provide an efficient means of utilising the credit the Dominion in times, of financial panic, so as to. restore public confidence." The mover urged that it would be possible to minimise the effect in New Zealand of world-wide panics and to prevent local panics occurring. At present we had no means of doing these things. In times of crisis'* the : public' might be called npdn to -meet their obligations in gold, and being quito,unable to do so, -would in many cases,be compelled to realise properties at a serious loss.; Mr. Rigg went on .to review tho history '.and, causes of-'ithe lato American crisis, and,;_argued that the assistance givon by the.United .States Govefnment was the most factor an. mjtigating the effects of the panic, and restoring confidence., The Position in How Zealand. , The' bank,- notes in circulation in; Now Zealand', 7 ' according .to the 'returns., of last March, . amounted to £1,640,000. ■ The deposits not paying interest were £11,534,879. ' The . gold, silvor, and other coin was £4,873,000, and the gold and silvor in tho form "of bullion' was. valued at £105,000. Thus there were not more than five _ millions wherewith to pay the thirteen millions. L He Was not reflecting on the solvency of the loan banks; their assets exceeded, their liabilities by four millions. Ho suggested a revival of the provisions of the Bank-Note Issuo AGt, 1903 which 'enabled the Government .to, declare • notes legal tend or'if such a step was de"ern&T'fiecfesSary. It would, however, bo fitter if the Government would 'take 'over tho 'issue' of notes .apd' charge :.the banks, interest thereon. If'the Government _was not prepared to. take this stop, they could mako provision for issuing State notes, at. tho banks in times of panic, tho banks to give security.- Theso notes should bo'inconvertible, and should be legal tender while in. circulation. Tho history of the world showed that ' paper currency always had to bo. resorted to in times of necessity, and the step .was always successful bccause it was backed by tho crcdit of the Stiite. The over-issuo and consequent depreciation of papor money could be guarded against, but even if this occurred, the injury; was not difficult to repair. By adopting the .measures 'he had. mentioned New Zealand , could place herself: in- a much safer position than other countries which showed less foresight. (Applause.)

Ministerial Statsmont. Tho;'f ATTORNEY-GENERAL .(Hon.' Dr. Fmdlay) advised caution in the treatment of so important 'a subject, and oiio on which authorities: differed. Mr.. Rigg .had erred in assuming that-tho'conditions of New Zealand aad'HDerlJmted States were sufficiently alike ;fofr comparative argument. Tho Bank of New- Zealand, with its Stato guarantee, was a strong defence, against iinancial panics. The existing legislation providing that banks need not redeem their notes elsewhere than'at'-'tho place'of issue was also a safeguard against a panic The present head of the Government had the financial interests of. tho country as much at heart as anybody, and was of opinion, after hp had fully considered the problems dealt with by Mr. Rigg, that no such legislation as had been-suggested was- necessary." I'Ko Prime Mister would- be .tho first to propose such legislation if circumstances required, it. Without tho slightest disrespect to Mr. Kigg, and with full appreciation of his able speech, he (Dr. Findlay)/ would ;ask. the Council'not to pass the motion. ( The Hon. T;' KELLY (Taranaki) suggested that Mr. Bigg should be content with having the subject ventilated, and should withdraw his motion.- - •" • The Hon. J. RIGG, in reply, urged that machinery should vbe provided ' beforehand to cope with- financial "panics which might' occur unexpectedly• This : would' mark the difference botween a statesman and a.politician; Very few years might pass before finis question bocame one of groat urgency. 6 /™o'tipn , was defeated by 24 votes to 5. • - -FIRST READINGS. ~ ThoOamani Harbour Board Loan Bill and the Christchurch City Betterment Bill woro received from tKo House of Representatives, read a'first time,, and reforred to committees! CORONERS AMENDMENT BILL. The. Council went into Committee on the Coroners Act Amendment Bill. „ following new sub-clauso was" added 'In any-inquest touching tho manner of tho death of any person it shall not be necessary for the coroner to view the body of that person in any caso wheroit appears, on the certificate ot some duly qualified medical practitioner, that tho deceased died of anv infectious''disease." . "

Mindt' amendments were made, and tho Bill was reported. CHRiSTCHURGH SANITATION BILL, STRONG PROTESTS. Tho.Hon.J. E. JENKINSON (on behalf of the Hon. O. Louisson) moved tho second reading of the Christchurch City Sanitation Empowering Bill, to empower tiie local authority i to borrow £30,000 for the purpose of facilitating . the ; making of sewerage connections The. Hon, E. : C. J. STEVENS (Canterbury) while approving of tho genera] purposo of the Bill, objected to the principle of authorisiii" a locill body to raise a loan without taking a poll of. the ratepayers. Ho submitted that this precedent might have widespread results, which had scarecly been contemplated. The Hill also provided, according to his reading of it, that an occupier who might be only a monthly tenant could set the proposed machinery in motion, with tho result that the property might bo mortgaged. The Hon. O. SAMUEL (Tarmki) sub-mitted-that tho Municipal Corporations Act made adequate provision fo.- tho advaneo of money to property on lici's for making sewer-

ago connections, and tho Bill was, therefore, unnecessary.

The ATTORNEY-GENERAL (Hon. Dr. Firidlay) stated, in tho course of further discussion, that ho understood from Mr. Gray, M.P., that tho ratepayers had already consented to tho work now proposed to be completed, and that the only reason for dispensing with a poll in tho present caso was to save expense. Tho Act of 1900 allowed advances to bo mado to owners of properties, and ho would like to know why this was proposed tn bo extended to occupiors. The Hon. J. E. JENKINSON, in reply, said it was proposed to dispense with a poll merely in order to save tho cost. The sum to ho borrowed was only £30,000, and this was for tho purpose of carrying otit work already begun. Tho proposal had received full publicity .in Christchurch. The provision as to occupiors was inserted because much of tho land in Christchurch was Church property, and was held 011 long leases. It was considered that tho occupiers and not tho ownors should pay for sewer connections in such cases, but if an occupier failed to meet the liability it would become a charge 011 tho property.' . •Tho - second reading was carried on the voices; ' Tho Council, at 4.45 p.m., adjourned until next Wednesday.