RATES OF INTEREST

Dominion, Volume 13, Issue 272, 11 August 1920, Page 6

RATES OF INTEREST

RESTRICTION RETAINED

ANOTHER STATEMENT BY MR. HASSEY

"llv opinion is that legislation is not rcquTrcd," said tho Prima Minister in the House of Representatives, when asked by Mr. Sidev (Dune'din SAuth) if ho could introduce legislation to enable local bodies and educational iflitliorities to pay more than 5J per cent, for borrowed money. Mr. Siacy had staled that tlio, local bodies found great difficulty in arranging their finances within, thb restriction imposed by tho maximum rate of interest. The rate of interest to be paid by local bodies for loans, other than overdrafts, was controlled by the' Government, added Mr. Massey, awl the Government intended to oonfamo doing everything within its power to keep the rate of interest down in New Zealand. If it yielded to the requests that were reaching it from many quarters, the rate of interest would be up to 8 per cent, very quickly, nnd Hint would not bo good, for anyone —not even for the lenders. He did not blame the local lwdies for clamouring for ■ money for various works, but ho I wanted to see them get the money at a fair rate of interest. The finances of ! New Zealand were in a perfectly sound condition at present, and compared favourably with those of any other part of the British Empire. Ho would deem it hie duty as long as be could manage it to keep the finances in that condition.